Case Study #1: $10mm+ Enterprise Value Creation for PE-Backed Platform
Industry: Multi-location consumer services
Transaction: Lower middle-market buyout
Timeline: Pre-recapitalization optimization
The Situation
A private equity fund acquired a multi-location chain of hair salons in 2018. While operational performance was strong, enterprise value was being constrained by:
- An oversized, fixed-cost internal HR team
- Fragmented vendors and manual processes
- A self-funded medical plan that was materially upside down
As the sponsor prepared for recapitalization, HR inefficiency had become a valuation problem.
Aspen’s Solution
Aspen HR conducted a full HR and benefits review and implemented our white-glove PEO solution, which included:
- Consolidation of HR, payroll, and benefits under Aspen’s platform
- Redesign of the medical plan to restore economic balance
- Strategic restructuring of the internal HR team to refocus on hiring, culture, and growth
The Result
- $1.2mm+ in annual savings
- $10mm+ increase in enterprise value
- A cleaner, more compelling recapitalization narrative