Case Study: Aspen HR’s PEO solution drives enterprise value increase of $10mm+ for private equity-backed platform acquisition

Saving Costs and Boosting Enterprise Value

The Situation

A PE lower middle market buyout fund acquired a multi-location chain of hair salons in 2018.

The investment has performed well but has been riddled with HR and benefits inefficiency and an underperforming self-funded medical program, which has handcuffed enterprise value.

The PE sponsor reached out to Aspen HR to unlock value in preparation for a future recapitalization.

Our Solution

Aspen’s team quickly identified several areas to improve upon: a high, fixed-cost HR team, a fragmented, disjointed vendor strategy, and a self-funded medical plan that was upside down.

The Result

Aspen’s PEO solution saved the port co. over $1.2mm per year ($10mm in EV) while enabling a restructuring of their internal HR team to focus on hiring, culture and other value-enhancing activities!