Case Studies
Cosmetics Portfolio Optimization
A mid-market beauty company with seven brands across skincare, makeup, and fragrance was struggling with uneven performance and capital allocation decisions. Portfolio ROIC had declined to 8% with three brands generating negative cash flow.
Analysis revealed a fundamental mismatch: the company was treating premium skincare and mass-market makeup as equivalent investments despite vastly different margin profiles and growth trajectories. Their fastest-growing skincare brand was starved of investment while resources flowed to declining fragrance lines.
I developed a portfolio classification framework based on market growth, competitive position, and capital intensity. Recommendations included divesting three underperforming brands, reallocating $12M in marketing spend to two growth brands, and exiting retail partnerships that diluted brand equity.
Results: the company divested three brands for $45M, reinvested proceeds in digital marketing and product development for core brands, and achieved 18-month revenue growth of 32% in remaining portfolio. Portfolio ROIC increased to 11.2%. The streamlined portfolio strategy enabled the company to compete more effectively in premium categories and positioned them as an acquisition target for a larger beauty conglomerate.
Startup Fundraising Strategy
A digital health startup had been fundraising for six months with no term sheets despite having 85% customer retention and partnerships with three hospital systems. Their pitch deck was technically sound but investors consistently passed with feedback about unclear market dynamics and scaling difficult.
The problem was market positioning. They described themselves as "healthcare workflow optimization" in a crowded space and failed to quantify the financial impact of their solution. Their revenue model mixed subscription fees with implementation services, confusing investors about scalability.
I repositioned them around their core differentiator: reducing nurse overtime costs through predictive staffing algorithms. Customer data showed an average 22% reduction in overtime expenses, translating to $340K annual savings per hospital. We restructured their revenue model to emphasize recurring software fees over services.
Results: their next ten investor meetings generated four second meetings and two term sheet processes. They closed a $4.2M Series A led by a healthcare-focused fund within twelve weeks of implementing the new positioning. The clearer value proposition also improved sales conversations, with deal cycles shortening from nine months to five months on average as hospital CFOs immediately understood the ROI potential.
Life Sciences M&A Target Identification
A mid-market diagnostics company wanted to expand into next-generation sequencing but lacked internal capabilities. Management had identified the strategic need but was overwhelmed by the fragmented NGS tools market with over 200 potential targets globally.
I developed target screening criteria focused on proprietary technology, established customer base, and revenue scale of $15-50M. Initial analysis of 180 companies yielded 23 viable targets across sample preparation, sequencing platforms, and bioinformatics software segments.
Due diligence prioritized targets with differentiated IP portfolios and recurring revenue models. Three companies emerged as top candidates: a sample prep automation firm, a specialized sequencing platform developer, and a cloud-based analysis software company. Financial modeling showed the sample prep company offered the best strategic fit and synergy potential.
Results: the client acquired the sample preparation company for nine figures, gaining automated workflow technology and access to 450+ research labs. Post-acquisition integration captured $8M in annual cost synergies and accelerated the client's NGS product roadmap by 18 months.