value-creation-plan

Value Creation Plan

Workflow

Step 1: Baseline Assessment

Understand the starting point:

• Current revenue, EBITDA, and margins
• Organizational structure and capabilities
• Key operational metrics by function
• Management team strengths and gaps
• Quick wins already identified in diligence

Step 2: Value Creation Levers

Map levers to an EBITDA bridge over the hold period (CrowTech standard 4-6 year hold):

Revenue Growth Levers

• Organic growth: Price increases, volume growth, market expansion
• Cross-sell / upsell: New services/products to existing customers or patients
• New market entry: Geographic expansion, new verticals, new channels, de novo sites
• Sales force effectiveness: Hire reps/providers, improve conversion, shorten cycle
• M&A / add-ons: Bolt-on acquisitions — usually the largest lever for multi-site healthcare services platforms
• Payor mix shift: Move toward higher-yielding commercial or value-based contracts (MSSP, ACO REACH, MA risk)

For each lever: current state → target state, revenue impact ($), timeline, investment required, confidence (high/medium/low).

Margin Expansion Levers

• Pricing optimization: Price increases, mix shift, bundling, payor contract renegotiation
• COGS reduction: Procurement savings (GPO leverage), supplier consolidation, automation
• OpEx optimization: Overhead reduction, shared services, offshoring
• Technology investment: Automation, systems integration, data analytics; for healthcare — RCM automation, ambient scribes, prior-auth automation, denials workflows
• Scale leverage: Fixed cost leverage as revenue grows

Strategic / Multiple Expansion

• Platform building: Add-on acquisitions, tuck-ins
• Recurring revenue shift: Move from project to recurring/subscription (or FFS to capitated/risk-bearing for services)
• Market positioning: Category leadership, brand
• Management upgrades: Key hires to professionalize
• ESG / governance: Board formation, reporting improvements

Step 3: EBITDA Bridge

Lever	Year 1	Year 2	Year 3	Year 4	Year 5
Base EBITDA
Organic revenue growth
Pricing
Add-on M&A
COGS savings
OpEx optimization
Technology investment
Pro Forma EBITDA
Margin

Step 4: 100-Day Plan

Days 1-30: Stabilize & Assess

• Management alignment and retention (sign employment agreements, set comp)
• Quick wins — pricing, obvious cost cuts, low-hanging fruit
• Detailed operational assessment by function
• Customer/referrer/payor communication plan
• Stand up reporting and KPI dashboards

Days 31-60: Plan & Initiate

• Finalize strategic plan and communicate to the org
• Launch top 3-5 value creation initiatives
• Begin add-on M&A pipeline development
• Hire for critical gaps
• Implement reporting cadence (weekly flash, monthly review, quarterly board)

Days 61-100: Execute & Measure

• First results from quick-win initiatives
• First board meeting with operating metrics
• Progress report on each lever
• Adjust plan based on early learnings

Step 5: KPI Dashboard

KPI	Current	Year 1 Target	Owner	Reporting Frequency
Revenue			CEO	Monthly
EBITDA			CFO	Monthly
EBITDA margin			CFO	Monthly
New customer wins			CRO	Weekly
Net retention			CRO	Monthly
Employee turnover			CHRO	Monthly
Cash conversion			CFO	Monthly

Step 6: Output

• Word or PowerPoint with:
  • Executive summary (1 page)
  • EBITDA bridge chart
  • Value creation levers detail (1 page per lever)
  • 100-day plan timeline
  • KPI dashboard
  • Accountability matrix
• Excel model backing the EBITDA bridge

Important Notes

• Be realistic about timing — most PE value creation takes 12-24 months to show in financials
• Quick wins matter for momentum, but don't over-rotate on cost cuts at the expense of growth
• Management buy-in is critical — co-develop the plan, don't impose it
• Track initiative-level P&L impact, not just top-line EBITDA
• Add-on M&A is often the largest lever — start the pipeline on Day 1
• Pressure-test assumptions with operating partners or industry experts