About the Company:
Founded in 1984, Corporate Payroll Services (“CPS”) is a leading provider of payroll and human capital management solutions to over 7,000 small and medium-sized businesses across the United States and Puerto Rico. The Company’s primary services include payroll processing, workers compensation insurance, health insurance, investment advisory services for retirement plans, ACA compliance assistance and time and attendance systems. The Company operates with its own internally developed payroll processing software that also provides time and attendance tracking, and employee onboarding solutions.
Sell-Side Mandate:
The Lenox Group was approached by the Company to explore finding a financial partner or buyer. Lenox prepared a market valuation of the business to help the shareholders determine their transaction options and design the most effective process. Lenox was engaged to sell the business and worked closely with the Company to prepare marketing materials, build a financial model, undergo a Quality of Earnings, and run a sell-side process to market the Company to prospective buyers and investors. Lenox assisted the Company with all phases of negotiation and transaction due diligence.
Outcome:
The Lenox Group advised CPS on a Majority Recapitalization with Tenex Capital Management. Founded in 2011, Tenex has raised four funds and currently invests out of its fourth vehicle, a $1.9BN fund. As part of the transaction, key CPS management team members will stay in place, while others will transition out of the business.