Private Equity Services
A deep understanding of the private equity business is our foundation in developing business solutions for private equity firms and their portfolio companies. Craford provides actionable advice which can generate significant measurable results through our rigorous analysis of risk, cost and opportunity.
We understand that increasing organizational performance from acquisitions by linking effective human capital strategies to business strategies is required. The management of health and welfare is a costly necessity that we manage effectively. Our clients appreciate the impact of our ability to advise, consult, and seamlessly integrate these initiatives into the overall business strategy of portfolio companies.
Merger and Acquisition Due Diligence
Benefits and human capital due diligence conducted correctly not only assesses current and future risk to the potential buyer, but helps ensure the integration of the acquired organization proceeds smoothly, rapidly and, most importantly, cost-effectively. Craford’s approach begins with assessment of the areas creating the greatest potential liability and works through to the purchase agreement. Our reports and exhibits are thorough and written in ways which provide an in-depth understanding of the current benefits and high-level human capital issues and incorporate recommendations for reducing cost and seamless integration post-close.
The key aspects:
- Understand the business goals and the priorities of the private equity client and customize appropriately
- Advise deal team on potential financial issues at the earliest possible opportunity in an easily understandable manner
- Advise on high-level compliance and regulatory issues which surface during due diligence
- Estimate the effect of benefits on the purchase price and develop cost reduction strategies
- Advise on wording regarding benefits and employee matters in the sale, purchase and transition agreements
- Use pre-deal research to develop a blueprint for benefits integration
- Develop strategies for expansion of purchasing power
- Develop strategies to drive organizational effectiveness and efficiency
In the event that a private equity firm purchases a portion of an existing company it may be necessary to set-up a brand new benefits program in a very short period of time. Craford has the experience and expertise to analyze the market and recommend the right solution for the company - a solution that is cost effective, yet minimizes disruption to the employee population. Once the right vendors have been selected, Craford has a proven track record of successfully implementing a new benefits program within tight timeframes.
By working with portfolio companies all over the country Craford has developed strong relationships with the insurance market from coast to coast. By understanding the national marketplace Craford can quickly recommend the ideal solutions for our clients, and implement those solutions successful by leveraging established relationships. Our clients experience lower costs and stronger representation from insurance vendors based on the relationships we have established.
In addition, part of our carve-out services include implementation of a full benefits administration solution that eliminates the need for the new company to have full infrastructure in place post-acquisition. This affords the private equity firm additional time to adequately assess the needs of the organization knowing that employee issues are being addressed and administrative tasks are being handled on a day-to-day basis.
Craford's approach to portfolio risk management is unique in the industry. Each portfolio company may have its own benefit designs, individual contracts with insurance carriers, dedicated national customer service teams and still be priced and treated as a large employer regardless of size. Our relationships and experience in this area places Craford in the position to offer solutions not available to individual middle-market employers. Portfolio programs are tailored to the individual needs of each operating company. The establishment of a “portfolio buy” can be negotiated with as few as two companies initially and expanded to additional operating companies over time.
Human Capital Consulting
Corporations today are complex with many process interdependencies. Understanding employees’ roles in achieving business objectives is paramount for organization’s success. To help achieve this success, Craford partners with senior managers and provides strategic benefits and human resource consulting to help organizations maximize their human capital. We create value by solving business issues which increase organizational effectiveness and financial performance.
Craford’s consulting services include:
- Short- and long-term benefits
- Total rewards strategy and planning
- Culture analysis and strategic development
- Organizational restructuring and change management
- Compensation analysis and planning
- Mergers and acquisitions planning
- Employee communications
The mission within all of our services is understanding the extrinsic and intrinsic strategic and programmatic solutions which companies and employees need to met executives’, outside directors’, and/or shareholders’ expectations.
