Mergers & Acquisitions

Mergers

Stonehenge can work with your PEO/Staffing Business to assist in analyzing and developing merger and acquisition strategies as it pertains to insurance programs, financial analysis, deal structure and revenue channel distribution.  Below are some examples of M&A services provided by Stonehenge to its PEO/Staffing clients:

Insurance Programs

  • Analysis of Target’s current insurance plans, historical loss experience, PEO/Staffing client exposures, changes in historical mix rates, etc.
  • Provide an assessment on how to integrate the Target’s book of business into your insurance programs and impact on deal cost/exposure.
  • Work with insurance markets to determine best available programs considering combined businesses.

Financial Analysis

  • Analysis of Target’s client profitability, understanding profit driven from arbitrage versus fees.
  • Quality of earnings review, focusing on non-recurring events that impact cash flow.
  • Project oriented analysis based on the customers’ needs, such as sell-side due diligence.

Deal Structure

  • Provide feedback on Letters of Intent
  • Develop due diligence processes to assess risk
  • Assist in structuring relevant Purchase Agreement concepts

Revenue Channel Distribution

  • Analysis of Target’s sales force and revenue channels
  • Review current and historical pricing methodologies to determine impact on profitability
  • Analyze Target’s sales and underwriting relationship

These are just a few examples of the types of services that Stonehenge has provided to its PEO/Staffing clients.  Every transaction is different, having its own unique challenges and potential synergies.  Our goal is to partner with our clients, be seen as an asset and team member, and assist in providing feedback as if this were our own PEO and related transaction.  Not only has Stonehenge provided these services in the past, we have experienced team members in M&A.

Employee Profile

Chris O’Connor, CPA worked for Ernst & Young’s Merger & Acquisition practice for 9 years, participating on over 50 transactions for both buy and sell-side due diligence, including several PEO transaction.  Chris also worked in several industries, including starting and selling his own PEO in 2009.

 coconnor@stonehengeis.com