Empowering Search Funds with Turnkey HR and Fortune 500-Level Benefits

In the dynamic landscape of private equity, search funds have emerged as a compelling model for acquiring and operating small to medium-sized businesses. These investment vehicles, driven by aspiring entrepreneurs, focus on using privately raised capital to identify, acquire, and subsequently manage small to medium-sized businesses (SMBs) with high growth potential.

However, the success of a search fund often hinges on the strength of its HR support — a critical yet frequently underinvested area in many search fund-acquired companies.

What is a Search Fund? The Model Explained

Search funds operate with the primary goal of acquiring and managing companies, offering a unique pathway for entrepreneurs to step into significant leadership roles within established businesses.

This model requires robust HR support to navigate the complexities of integrating new leadership, aligning employee goals with new management objectives, and fostering a culture of growth and efficiency. Despite its importance, HR and benefits within search fund-acquired companies often receive less attention, impacting the overall success of the acquisition.

Aspen HR's Tailored PEO Services for Search Funds

Recognizing the unique challenges and opportunities faced by search funds, Aspen HR offers a suite of services designed to empower these ventures with strategic HR solutions.

Proven Track Record

$150k worth of cost savings: Life sciences venture fund

Operating across California and North Dakota, a life sciences venture fund was grappling with service issues from their then HR provider, which was a large national firm. They thus needed a new PEO partner that could manage their remote employees, who were scattered across multiple states.

Aspen HR’s white glove service model caught their attention, and the venture fund went on to make the switch. We then developed custom offerings for the firm, with which we proceeded to support their human resource operations.

The subsequent results were remarkable – as we raised their employee satisfaction rate and saved the company over $150k.

Nominated as partner-of-choice post-acquisition: Private equity firm in California

A California-based private equity firm was in the process of acquiring a home infusion company in Texas. During the due diligence phase, though, the buyer expressed concerns regarding potential HR risks on the side of the home infusion entity. It then sought Aspen HR’s expertise to evaluate the risks.

Aspen HR successfully identified multiple issues, including inefficient manual HR processes, invalid non-compete agreements, outdated forms, and job misclassifications. Consequently, the buyer engaged Aspen HR to implement corrective actions post-acquisition, making us the company’s long-term HR partner of choice.

Comprehensive HR and Benefits Due Diligence

Aspen HR provides complimentary HR and benefits due diligence for potential acquisitions, enabling search funds to make informed decisions. This critical service helps identify potential HR liabilities and opportunities for improvement, ensuring a smooth transition and integration process post-acquisition.

Seamless PEO Services for Search-Fund Acquisition Companies

Post-acquisition, managing HR can be a daunting task for search funds. Aspen HR’s Professional Employer Organization (PEO) services ensure efficient HR management, covering everything from payroll and benefits to talent optimization and performance management, allowing search fund operators to focus on strategic growth initiatives.

Ensuring HR Compliance

HR compliance for search funds is a critical concern, given the legal complexities of managing a workforce. Aspen HR offers dedicated compliance services, ensuring that search fund-acquired companies meet all legal HR requirements, mitigating risks and safeguarding against potential liabilities.

Automating HR Workflows with Advanced Technology

Aspen HR leverages advanced technology to automate HR and payroll workflows, streamlining operations and enhancing efficiency. This technological capability allows search funds to manage their HR functions more effectively, freeing up valuable resources for other strategic areas.

Fortune 500 Caliber Benefits at Cost-Effective Rates

Because most search fund companies have less than 100 employees at the time of acquisition, Aspen HR can usually provide medical insurance at lower rates, saving the company thousands of dollars. These employee benefits are tailored to meet the specific needs of employees in search fund-acquired companies, enhancing satisfaction and retention.

Personalized, White-Glove Service Approach

Aspen HR is committed to providing personalized, white-glove service to each search fund and its acquisitions. This approach ensures dedicated support and expertise, addressing the unique challenges and opportunities of each venture.

Partnering with Aspen HR for Search Fund Success

Aspen HR’s services are uniquely designed to align with the strategic goals of search funds, facilitating growth and operational efficiency in acquired companies. Under the leadership of Mark Sinatra, who brings years of direct experience as a search fund operator and investor since 2007, Aspen HR addresses common challenges for search funds, particularly in HR and benefits management. Sinatra’s intimate familiarity with the search fund model ensures that Aspen HR’s solutions are precisely tailored to meet the needs of this unique investment strategy.

Connect with Aspen HR for Your Search Fund

Discover how Aspen HR’s specialized PEO services can support the unique HR needs of your search fund. Reach out to us for a consultation or demo and take a closer look at how our offerings can enhance the operational efficiency and growth potential of your acquired company. Contact us today!