Why Private Equity Companies Need Healthcare PR for Their Portfolio Companies

Can public relations (PR) solve your healthcare companies’ problems? No, but neglecting PR can give more share of voice toprivate equity portfolio companies’ competitors in an increasingly competitive industry. Good healthcare PR can strengthen the bond between company and customers, especially during times of change such as a shift in ownershipand reassure customers that the company they know and lovestill embraces the same values and commitment to quality. This is especially important in an intensely competitive environment, particularly when small and mid size healthcare companies begin to challenge blue chip incumbents, and when companies need to prove that they have done their homework to accommodate changing consumer tastes. Mindful use of healthcare PR can also put a lesser known company on the radar of top tier employee candidates.

Here are three ways PE companies can utilize the power of healthcare public relations to expand their private equity investments.

Healthcare PR Can Attract Top Talent

Having the right people in the right roles, helps companies scale effectively. Private equity companies can use a healthcare PR agency to recruit the right talent who will lead their portfolio companies to success. Growth goals require hiring new people on board. However, high performers are selective about the companies they work with. Why? Because they actively manage their careers, and they conduct their own due diligence on prospective employers to ensure that each company name they add to their resume adds the same level of value that they will add to their new team. Public relations efforts that go beyond branding and sales, and focus on recruiting, can bring tremendous value.

Healthcare PR Can Communicate Value to Customers to Maintain Trust

A trusted brand has a couple of important components. First is the promise of value from company leadership to the customer. The second is how that customer perceives a brand. Sometimes, as a company progresses from startup through large organization, senior leadership may become more removed from direct communication with their customers due to the daily demands of scaling a business on the operational side. It is therefore beneficial to periodically reflect on your brand strategy to make sure that current and potential customers perceive the brand in the same way that the company intends.

When it comes to trust, consistency is key. Sometimes a portfolio company experiences growing pains, where scaling quickly is such a focal point that maintaining brand integrity falls by the wayside. This can result in an inconsistent digital footprint and confused customers. Some examples of this are: dissimilar branding across multiple locations and digital platforms that host outdated information. This all leads to inconsistencies which leads to mistrust amongst consumers. Healthcare public relation agencies help alleviate this by creating consistency with messaging and outreach.

Internally, PE investments can be scary for the people below the C Suite and VP level who now have to deal with change and implement an aggressive growth plan. Having an internal communication strategy can significantly help alleviate any concerns when it comes to new ownership, the vision of the future, and the road map the company will use to achieve these goals.

When management is on the same page internally and consumer-facing assets are cohesive – the brand reveals a united and trustworthy front.

Healthcare PR Can Sell a Story

Customers may be afraid of change, especially a change in management or ownership, because they see it as a large unknown. They feel like they know the company and its leadership, but they have had a lot fewer interactions with private equity firms. Left to ruminate in their own thoughts, customers may not understand why ownership changed, and they may think that the valued goods and services that they have come to know and love are going to change unexpectedly.

This fear may not seem logical or obvious to senior leadership, because they have most likely spent the last several months getting to know the people within the private equity firm through the interview, due diligence, and purchase process. After all, private equity firms purchase companies that have a lot of value and potential, because these firms have a duty to their shareholders. Companies who recognize this time as an opportunity to engage with and listen to customers can find insights that just might springboard growth and additional success!

Private equity firms invest in companies for a reason that goes beyond the financials and valuation metrics. They invest because they see the company’s potential.Portfolio companies may not have had the means to communicate their potential, but with the private equity firm’s help, the power of healthcare public relations can get their story out there.Companies who position themselves as clear leaders in their space can enjoy a greater amount of success when compared with their peers. The only question left, is what does your company want to succeed in tomorrow?

Quaintise has over 15 years of experience helping healthcare companies succeed by providing medical marketing, public relations and branding strategies. If you are ready to achieve the next goal in your company’s path to increased success.