Providing Intelligence to Private Equity Investors

Before proceeding with any private equity investment, it is essential to obtain a full picture of your target firm’s true benefits costs and liabilities. As benefits specialists, our expertise brings to light undisclosed costs and liabilities that generalists often miss.

Our evaluations focus on:

• Fact-checking self-reported data from the targeted company
• Determining actual benefits costs.
• Evaluating the competitiveness of the firm’s benefits plans.
• Auditing HR administrative compliance.
• Identifying hidden liabilities.
• Advising our private equity clients if the firm valuation should be negotiated down.
• Managing transitions (integration planning if a merger, plan transition if changing to/from self-insured, etc.)

Our hands-on service enables the post-transaction transition phase to run smoothly. We seamlessly integrate different benefit plan designs, employee coinsurance and copay structures, and coordination of benefits administration. We also provide ongoing benefits advice and compliance assistance.

How we deliver:

Corporate Synergies' experts will thoroughly evaluate the target firm's health plans —including medical, dental, vision, group life insurance, short-term and long-term disability, voluntary benefits and long-term care.

1) Our staff will go onsite to directly audit HR/benefits data, determine true benefits costs and to assess legal compliance. While we concentrate on the health plans, a partner firm focuses on the target firm’s compensation structure and retirement plans. We may also engage a due diligence partner firm for international private equity transactions.

2) Our experts will determine the actual percentage of the total compensation budget allocated to benefits, the efficacy of the firm’s strategies to reduce and control net benefit costs and whether the firm’s plan designs provide a viable ROI, based upon both proprietary and industry benchmarks.

3) We will fully inform you of all potential costs and liabilities which affect purchase price and potential ROI. If such weaknesses are uncovered, we will provide you customized strategic solutions, which not only minimize your potential liability but also increase your bargaining power with the seller.

Our guarantees to you:

• Thorough assessment of the accuracy of the target firm’s self-reported information.
• Fast turnaround. We will meet or exceed industry standard turnaround times. With clean data, we can deliver the information you require in as little as 10 days.
• Assistance minimizing financial and legal liabilities.
• Full confidentiality.
• Post-transaction integration of benefit plans.
• Ongoing cost savings and improvement of benefits-related ROI.