Case Study

Private Equity Portfolio Back-Office and HR Consolidation Overview

A private equity firm engaged us looking to streamline human resources processes and consolidate back- office operations across its portfolio companies. Initially, each portfolio company independently

managed separate payroll systems, employee benefits plans, 401(k) plans, and workers' compensation

policies, leading to inefficiencies, compliance issues, and a lack of consistency.

Objectives

- Consolidate payroll systems into a single platform

- Unify management of employee benefits through one strategic broker

- Streamline 401(k) administration under one master plan for compliance and cost savings

- Evaluate and optimize workers' compensation policies to achieve financial efficiencies

- Enhance HR communication and process across the portfolio

Merge Edge’s Solutions and Implementation

Payroll Consolidation:

Successfully transitioned five separate payroll systems into one unified payroll solution. Our team quarterbacked the implementation process and significantly reducing the workload on internal company staff.

Employee Benefits Management:

Each portfolio company maintained its unique benefits package, but Merge Edge centralized benefit management through one strategic broker. This approach standardized administration, facilitated cohesive oversight, and positioned the portfolio for favorable group-negotiated terms in the future.

Workers' Compensation Optimization:

Our team introduced a PE-focused broker to reassess existing workers' compensation policies, uncovering more than $100,000 in immediate savings.

401(k) Plan Consolidation:

Transitioning to a single master 401(k) plan ensured full compliance with regulatory standards, corrected previous discrepancies in plan designs and matches, and provided substantial administrative and financial savings.

Enhanced Human Resources Management:

Merge Edge oversaw the HR strategy and change management initiatives to align people operations across the portfolio. We created comprehensive employee communications detailing changes and attended HR related meetings to ensure alignment, engagement, and continuity throughout the transition.

Results and Impact

Financial Savings:

Achieved nearly $300,000 in direct cost savings from consolidations and efficiencies.-

Compliance Assurance:

Increased compliance across payroll, benefits, 401(k), and workers' compensation, significantly reducing risk exposure.

Operational Consistency:

Created consistent, streamlined processes, technology platforms, and broker partnerships across the portfolio.

Strategic Future Positioning:

Established a robust framework for future cost savings and strategic advantage through centralized vendor relationships.

Result

Merge Edge's strategic management and consolidation of payroll, employee benefits, 401(k), workers' compensation, and HR strategy delivered significant financial, operational, and compliance advantages for the PE firm's portfolio. By creating consistency, compliance, and strategic alignment, Merge Edge has positioned the portfolio for continued growth and efficiency.