Navigating Successful Acquisitions: Caption Health’s Journey to Acquisition Readiness with Rooled

Success Stories / Case Studies
Happy man on the phone sitting on his couch with his laptop

In February 2023, GE HealthCare completed its acquisition of Caption Health, an innovative healthcare company specializing in AI-powered ultrasound imaging solutions. The acquisition marked a significant milestone for both companies and presented numerous challenges and opportunities.

It also stands in time as one of Rooled’s biggest and most delightful surprises… because you know accountants love surprises!

Who is Caption Health?

Caption Health launched in 2013 with the goals of revolutionizing medical imaging with its AI-powered solutions. 

With a strong focus on democratizing medical imaging, Caption Health aims to make ultrasound technology more accessible, accurate, and efficient. Through their cutting-edge advancements and strategic partnerships, Caption Health is reshaping the landscape of medical diagnostics and revolutionizing the way healthcare professionals approach ultrasound imaging.

Their flagship product, Caption AI, transforms standard ultrasound systems into intelligent imaging assistants, providing real-time guidance and automated interpretation. This breakthrough technology enables healthcare professionals of varying expertise levels to capture high-quality images and make accurate diagnoses, improving accessibility and patient care.

Acquisition Advantages, Challenges, and Opportunities for Integration and Advancement

When you hear GE, lightbulbs might come to mind, but there’s a lot more to this global powerhouse, especially in the healthcare industry. GE HealthCare, as a stand-alone company, is at the forefront of precision care, envisioning a future where healthcare knows no limits.

In their new era, GE HealthCare is dedicated to infusing innovation with patient-focused technologies, making hospitals more efficient, clinicians more effective, and therapies more precise. The mission is clear: to build a healthier future where possibilities become reality through groundbreaking medical technology, intelligent devices, and innovative care solutions. They partner with customers to fulfill healthcare’s greatest potential: providing better tools for better patient care.

One of the primary challenges faced during the acquisition was the integration of Caption Health’s technology and expertise into GE HealthCare’s existing product portfolio. This required meticulous planning and coordination to ensure a smooth transition and seamless incorporation of Caption AI, the flagship product of Caption Health, into GE HealthCare’s offerings. Aligning the cultural aspects and work dynamics of the two organizations posed another challenge that needed to be carefully addressed.

On the other hand, the acquisition brought forth several opportunities for both Caption Health and GE HealthCare. For Caption Health, joining forces with a global leader like GE HealthCare provided access to extensive resources, market reach, and a vast customer base. This enabled them to accelerate the adoption of their AI-powered ultrasound technology on a larger scale and expand their impact in the healthcare industry.

For GE HealthCare, the acquisition of Caption Health offered a strategic advantage by adding cutting-edge AI capabilities to their portfolio. Caption AI’s real-time guidance and automated interpretation strengthened GE HealthCare’s ultrasound offerings, enhancing the accuracy and efficiency of their diagnostic solutions. This acquisition further solidified GE HealthCare’s position as an industry leader in medical imaging technology.

In a GE HealthCare news release, Karley Yoder, Chief Digital Officer, Ultrasound at GE HealthCare, who will integrate Caption Health into the broader digital ecosystem of GE HealthCare, said, “We couldn’t be more excited to partner with the Caption Health team to increase access and accelerate growth of ultrasound. Caption Health will first be integrated in the Point of Care and Handheld business portfolio to advance ultrasound adoption, with expanded future use cases as well.

The acquisition also presented the opportunity for collaboration and knowledge-sharing between the talented teams of both companies. The combined expertise and resources allowed for the exploration of new possibilities in the development of advanced healthcare technologies and solutions.

Acquisition Under Wraps?

How Rooled’s Approach and Service Model Made a Under-the-Radar Acquisition Possible.

As with many major business transactions and milestones, the GE x Caption Health acquisition was confidential in nature. Not even their accountants were notified about the potential transition. 

Without that knowledge, Rooled’s standard level of service and client experience held up remarkably well out of the box to the rigors of an acquisition by a major global business. Here’s what that looked like for Caption Health:

1. Initial Assessment and Strategic Recommendations:

Rooled’s journey with Caption Health commenced with their proactive approach, allowing us to engage collaboratively during crucial phases such as audits and fundraising. Recognizing the significance of these early stages, Rooled worked closely with Caption Health which also led to laying the groundwork for a successful acquisition journey without even knowing it.

The due diligence process presented challenges that demanded urgent attention and an unwavering commitment to excellence. Rooled navigated the intricacies of the due diligence phase, responding promptly to urgent data requests. “Being a small company acquired by a large company, there were multiple asks around new schedules, both tax and accounting, as well as accelerated close times. I was impressed by Rooled’s deep bench of experts and excellent response time for requests,” said Ainslie Mayberry, COO & CFO of Caption Health. 

The urgency of these requests highlighted the dynamic nature of the acquisition landscape, reinforcing Rooled’s ability to adapt swiftly to meet the unique needs of Caption Health. This initial collaboration set the stage for a successful partnership, demonstrating Rooled’s commitment to providing tailored solutions and strategic recommendations that empower clients to navigate complex financial terrains.

2. Tailored Solutions for Transitional Needs:

Caption Health, like many businesses undergoing transitions, faced challenges stemming from financial management changes. Rooled, recognizing the need for tailored solutions, engaged in cross-functional collaboration to address gaps left by these changes. Our collaborative approach involved aligning financial strategies with the evolving needs of Caption Health, ensuring a seamless transition during this critical phase.

The urgency of transitional needs demands swift and decisive action. Rooled’s commitment to client success was evident in the urgent support provided, coupled with rapid response times to meet tight deadlines. Even without prior knowledge of the impending acquisition, our proactive work ethic allowed us to respond effectively to Caption Health’s immediate requirements, showcasing Rooled’s dedication to providing unparalleled support during transitional periods.

3. Streamlining Operations and Improving Financial Visibility:

Streamlining operations is paramount, especially during periods of growth and transition. Rooled took specific actions to optimize Caption Health’s financial processes. This involved a meticulous analysis of existing operations, identifying areas for improvement, and implementing strategic changes to enhance efficiency.

The importance of agility and adaptability was emphasized as Rooled handled urgent requests with precision. In the dynamic environment of acquisitions, the ability to adapt swiftly to changing circumstances is a hallmark of Rooled’s approach. By streamlining operations and improving financial visibility, Rooled played a pivotal role in ensuring Caption Health’s financial infrastructure was agile enough to meet the demands of rapid growth and transition.

4. Guiding Strategic Decision-Making:

Rooled played a crucial role in guiding strategic decision-making for Caption Health, leveraging our information and expertise even when unaware of the acquisition details. The accuracy and reliability of the financial information provided by Rooled became a cornerstone for Caption Health’s leadership in making critical decisions. 

Despite the confidential nature of the acquisition, Rooled’s insights contributed to informed decision-making processes, showcasing the depth of our commitment to client success and our ability to provide valuable guidance during periods of uncertainty.

Caption Health’s reliance on Rooled’s accuracy and expertise underscored the trust established between the two entities. Even without explicit knowledge of the impending acquisition, Rooled’s financial information and recommendations proved to be a dependable resource for strategic decision-making. The seamless integration of Rooled’s insights into Caption Health’s decision-making processes exemplifies the valuable partnership that transcends the boundaries of conventional financial consulting.

5. Empowering Leadership and Scaling Operations:

Rooled’s contribution went beyond providing financial information; it extended to empowering Caption Health’s leadership during the critical scaling stage. By implementing our strategic financial expertise, Rooled played a pivotal role in ensuring the success of Caption Health’s operations during this significant phase of growth.

The Importance of Financial Confidence for Healthcare Startups

Empowering leadership involves providing the necessary tools and insights to make informed decisions. Rooled’s expertise in financial consulting became a guiding force for Caption Health’s leadership team, enabling them to navigate the complexities of scaling operations with confidence. This facilitated a smooth scaling process, allowing Caption Health to focus on its core objectives while Rooled handled the intricacies of financial management. This collaborative effort contributed to Caption Health’s success in achieving operational excellence and growth during the scaling stage.

Caption Health’s acquisition journey marked a blend of successes and challenges, a testament to the dynamic nature of transitional periods. Through their collaboration with Rooled, Caption Health navigated these intricacies, achieving notable successes while addressing challenges head-on. The acquisition not only strengthened Caption Health’s position in the healthcare industry but also highlighted the pivotal role of financial expertise in ensuring a smooth and successful transition.