YOUR OPERATING PARTNER for HR OPERATIONS™

Supporting the HR workstream throughout the M&A lifecycle encompassing pre-deal due
diligence, Day-One readiness and post Day-One synergies.

Deal Life Cycle

Deeper Diligence:
HR-Driven Focus

Successful
Day-One

Road-map for synergy capture and integration

  • Operational Due Diligence
  • Platform stress testing Integration planning
  • HR risk identification and quantification
  • HR transition road-map 
  • Migrate and integrate data leveraging our ‘Data Transfer and Reconciliation Process’ (DTRP)
  • Effectuate deal terms ensuring all HR data, systems, plans, programs and vendors are prepared for Day-One
  • Identification, quantification and implementation of cost synergies through process improvement opportunities
  • Liaise with key internal stakeholders and advisers, HR vendors, counsel and the PMO  
  • Execute and implement post Day-One synergies
  • Manage plan, system, process, vendor integration and migration
  • Rapid response issue management
  • Quantification of ROI
  • Vendor rightsizing

Harmonization

Optimatum works with clients as their Operating Partner for HR Operations™ — leveraging the aggregate purchasing power of their portfolio to unlock value along the HR workstream through harmonization

Economies of scale and aggregated purchasing power create value

Streamlined processes, fewer meetings, single customer support team etc.

Delivering programs that were historically not available to standalone entities

Consolidated reporting and streamlined compliance

Private Equity/Family Office/Holding Companies are in a unique position to leverage the aggregate purchasing power of their portfolio to capture value and drive margin expansion through HR Harmonization across their holdings.     

“We looked at 60 or 70 different operations we had where a certain amount of centralization can save real money. We found inefficiencies.”  
— Warren Buffett, Berkshire Hathaway 2021 Annual Meeting

Case Studies

Medical/RX Harmonization

RX Harmonization

Employer Sponsored Healthcare Harmonization

Payroll Harmonization

Situation:

Private equity with 8 portfolio companies and 5,700 employees enrolled in benefits across multiple vendors.

Situation:

Five portfolio companies with ~20,000 employees seeking to realize synergies through harmonization of pharmacy benefits.

Situation:

US conglomerate of 14 affiliates with 3,500 enrolled in benefits seeks to create value through a harmonized employer sponsored healthcare program.

Situation:

Client with 10 decentralized operating entities and 21 disparate instances of payroll creating operational inefficiencies and exorbitant fees.

Solution:

Optimatum supported the client in leveraging the aggregate purchasing power of its portfolio to create and capture value through harmonization within the HR workstream.

After effectuating the entire harmonization process, Optimatum continued to manage the harmonized program to ensure continued optimization, proactive compliance, financial and operational efficiencies.

Solution:

Optimatum provided stewardship during the RFP process, expedited contract negotiation approval, managed the implementation, and provided ongoing guidance to management.

Solution:

Optimatum managed the end-to-end implementation, ensured Day-One readiness and provided continued post Day-One compliance and clinical support.

Solution:

Optimatum managed the consolidation process, realigned contract terms.

Results: 

  • Savings of $6.3M/year of Medical and Pharmacy spend
  • Continued value capture through harmonizing additional benefits; expected savings of $1.5M

Results:

  • $50M Rx savings over 3 Years, additional $12M projected 2023-2025 
  • Saved an additional 16% annually by harmonizing their Life and Disability benefits

Results:

  • $5M annual savings plus additional process improvements of~$1.5M annually
  • Streamlined operations and compliance through creation
    of a shared service center

Results: 

  • Savings of ~$500K over 3 years   
  • Establishment of shared service center enabled entities to reallocated internal resources 
  • Rightsized vendor relationship to address the client’s needs

End-to-End Deal Lifecycle

Deal Overview:

Doubling in size, absorbing globally complex employee compliment.

Deal terms 18 months “comparable in the aggregate” for all HR programs of the acquired entity;

  • 21 vendors successfully integrated for Day-One with frequent closing date timeframes fluctuations requiring fluidity in managing employer of record and control group issues

Delivery Execution:

Optimatum delivered an integrated solution across all aspects of the HR workstream, encompassing H&W, retirement, payroll and HRIS.

  • Replicated and implemented all HR/benefit programs
  • Executed our DTRP process (for all HRIS, Payroll and Benefits Data).
  • Transfer and consolidation of retirement programs, plans and assets
  • Managed complex compliance process
  • Effectively partnered with counsel and advisors
  • Provided on-sight monitoring enabled expedited real-time issue resolution
  • Successful Day-One ultimately managed 525 unique tasks