Success Stories / Data Project Delivers 3x Return for Private Equity

Data Project Delivers 3x Return for Private Equity

Data & AI

Cuesta supported a Private Equity Partner throughout the entire deal cycle of a medical equipment retailer—from data strategy and execution through sell-side diligence—including building a transformative data foundation during the hold period, resulting in a 3x return on investment.

Data and AI Strategy
Data Activation and Remediation
Analytics Enablement
Sell-Side Due Diligence

Cuesta Supported Every Phase of the Deal Cycle

Challenges

Operational inefficiency and legacy technology prevented private equity partner from realizing the full value of a 14.3% increase in market segment per year and acquisition activity
The portfolio company acquired a competitor to double geographic reach, leading to overlapping technology and duplicative processes preventing unified financial reporting and analytics
Poor data visibility and data quality prevented business from making accurate business decisions, highlighted by 33% of critical rates data missing, limiting the financial team’s ability to confidently report monthly revenue as demonstrated by frequent re-statements of revenue
Capture value of new technology strategy and data team investments to strengthen the position of the portfolio companies’ technology team and capabilities during the sales process

Solutions

Cuesta developed a comprehensive post-close data strategy, highlighting the opportunity to activate market- and acquisition-led growth through technology and data investments focused on unifying two businesses to achieve efficiencies and improve operations
During the hold period, Cuesta designed and implemented an extensible, unified data model with 9 critical dimensions to consolidate patient and transactional data from three source systems
Cuesta established and led a weekly cross-functional data quality working group to address critical data quality gaps, leading to nearly 99% completeness of rates information and discovery of a $2.3M revenue adjustment caused by data entry errors
Cuesta executed a swift three-week Sell-Side Diligence to present cohesive narrative for technology and data strategy and strength of market position, supporting $1.2B valuation

“Partnering with Cuesta allowed us to build a scalable data framework for our business. Financial reporting and business metrics that used to take days to compile are now available real-time, allowing us to spend more time making strategic decisions rather than adding up results.”

– Director of Data and Technology at Portfolio Company

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