Case Studies

Paycor, Inc.

Company:

Paycor, Inc. is one of the largest independent providers of payroll services and human resource solutions to small and medium size businesses

Situation:

Paycor initially contacted Primus to raise primary capital to fund a systems platform conversion and upgrade, the development of new products and an expansion of its direct sales organization

Primus’ Role:

• Led two growth equity investments which resulted in a minority ownership in Paycor.  The capital was used by the Company to expand its business, repay existing debt and repurchase stock from certain individual shareholders
• Assisted in developing the direct sales strategy that resulted in a transition from a local sales focus to a broader regional coverage
• Worked closely with management to negotiate and close two acquisitions that expanded Paycor’s geographic reach and customer base
• Teamed with Bob Coughlin, CEO, to add senior management talent including a CFO and COO

Company Performance:

Paycor grew revenue more than six-fold, with significantly greater EBITDA growth due to operating leverage, during the Primus investment period

The Outcome:

Paycor’s improved operating performance and financial success positioned the Company to repurchase the stock held by Primus resulting in an attractive return on invested capital