Client Case Study:
A struggling medical diagnostics laboratory grew from negative EBITDA to greater than $25,000,000 in 18 months in the face of a global pandemic and recession.
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Situation

  • The company’s sales force had revolted against the owner and took 75% of the lab’s customers with them when they left the organization.

  • Bad morale and a great sense of despondency had swept the company.

  • The lab had lost money for six consecutive months when we were asked to join the management team.

 

Approach

  • Once BlueByrd joined the management team, we went into the discovery phase of our process where we:

    • Examined their sales structure and approach

    • Reviewed their product offerings

    • Analyzed and segmented their addressable market

    • Conducted a personnel assessment

    • Audited their marketing and sales tools and channels 

    • Performed voice of customer research

  • There was a lot to learn, but at the same time, the organization could not burn money forever. We had to get some quick wins to start the revenue engine back up, so we formed a stopgap strategy while we were building a longer-term, more-sustainable growth strategy.

    • Short-term strategy: “Stop the bleeding”

      • Form an account recovery strategy

      • Restructure sales process

      • Provide sales training for one of the owners of the lab

      • Generate new customers using an outsourced, inside sales model

      • Rebrand the lab

      • Upgraded sales enablement tools

    • Mid-term strategy: “Rapid and Sustainable Growth”

      • Switch to a national distribution sales model using independent distributors

      • Build distributor acquisition strategy

      • Commercialize and productize differentiated offerings

      • Mature inbound and outbound marketing tactics

      • Develop a less academic and more commercially minded culture

    • Long-term strategy: “Increase Enterprise Value and Position for Exit”

      • Focus on increasing EBITDA 

      • Professionalize the organization 

      • Continued brand building and inbound marketing strategy

    • Bumps in the Road

      • Had to rebrand due to national conflicts with undifferentiated name

      • Had to reposition offerings due to fears associated with the COVID-19 global pandemic

 

Impact

  • Working with the management team, we were able to help reverse the fortune of the lab. Without immediate action, the lab would have gone bankrupt in two months. Instead, in just 9 months, the laboratory had its best April in the company’s history, all while in the grips of a global recession. 

  • Cashflow was strong, enabling the owners of the lab to take substantial bonuses. 

  • Matured sales and marketing process drove high-margin offerings that increased enterprise value.

  • Increased earnings to more than $20,000,000 in less than one year.

Find out more about our approach