Due Diligence in Benefits Planning: What PE Firms Need to Know
March 5, 2024
Due Diligence in Benefits Planning: What PE Firms Need to Know
March 5, 2024

Building Scalable Benefits for a Rapid Buy-and-Build

Client Overview:

Goodturn Tire & Auto, a Palm Court Capital portfolio company, is a Florida-based group of automotive repair facilities with over 200 employees.

Challenge:

In utilizing the buy-and-build growth strategy, Goodturn faced the challenge of aggregating employee benefits across its continually expanding network of service centers. Adding new locations across multiple states. The limitations imposed by health insurance carriers further exacerbated this challenge.

Elevate Your Benefits Management Strategy! Unlock the power of tailored solutions to streamline benefits administration and drive growth.

Solution:

Benefit Group, experienced in meeting the needs of private equity-backed enterprises, delivered a comprehensive strategy:

  • Strategic Platform Planning:

    Leveraging its unique relationship with Blue Cross Blue Shield, Benefit Group was able to engineer a scalable platform for a health plan. This solution enabled seamless integration of acquisitions and ensured uniform benefit provisions across Goodturn Auto & Tire’s expanding footprint.
  • Customized Segmentation:

    Benefit Group strategically leveraged its carrier relationships to negotiate custom agreements for Goodturn’s benefits package regarding unique acquisitions. This resulted in customization of benefits as needed for the acquisitions that required it, all while preserving the integrity of the overarching benefits framework.
  • 401(k) Excellence:

    Recognizing the significance of retirement benefits in talent retention, Benefit Group facilitated the implementation of a customized 401(k) plan. By adopting into a Pooled Employer Plan, this strategic move positioned Goodturn to access Fortune 50 pricing while supporting the company's growth trajectory within the competitive automotive service industry.
  • Proactive Compliance Management:

    Navigating the regulatory landscape, Benefit Group preemptively addressed compliance obligations such as ACA, FMLA, and Form 5500 filings as Goodturn continues to grow. By ensuring adherence to regulations, Benefit Group safeguarded Goodturn against potential significant penalties and operational disruptions.

Results:

The collaboration with Benefit Group yielded transformative outcomes for Goodturn Tire & Auto:

1

Streamlined benefits administration across diverse geographic locations.


2

Seamless integration of acquisitions, minimizing operational disruptions.


3

Tailored benefits segmentation, catering to the unique needs of each acquired entity


4

Successful implementation of a robust 401(k) plan, enhancing employee satisfaction and retention.


5

Proactive compliance management, mitigating regulatory risks and fostering business continuity.



Conclusion:

Benefit Group's specialized expertise in benefits management for private equity-backed enterprises empowered Goodturn Tire & Auto to focus on strategic growth initiatives. This case exemplifies Benefit Group's commitment to delivering value-driven solutions that align with the objectives of private equity firms, ensuring operational efficiency and sustained growth for their portfolio companies.

Ready to Transform Your Benefits Program? Discover how Benefit Group's expertise can help you overcome challenges and achieve your strategic objectives.

Related posts