M&A HR Integration Support: Rebuilding HR & Strengthening Compliance

THE CHALLENGE

A private-equity-backed manufacturer acquired a complementary business and needed to rapidly integrate employees, processes, and systems while correcting long-standing HR, payroll, and benefits compliance issues. Prior to the acquisition, HR sat under Finance, resulting in missing audits, unmonitored payroll deductions, and benefits administration gaps. As the business scaled, these issues created compliance exposure, hidden liabilities, and operational risk. The organization required strategic HR leadership, rigorous controls, and a modernized HR infrastructure to support continued growth.

OUR ROLE

enhanceHCM served as the organization’s Fractional CHRO and post-acquisition integration partner, leading HR due diligence through full integration. Acting as a member of the executive leadership team, enhanceHCM built out the HR function, implemented compliant payroll and benefits processes, optimized ADP, and established audit controls across all HR programs. The team also identified critical compliance failures, financial exposure, and operational blind spots while hiring key HR talent and elevating employee experience and governance.

SOLUTIONS

  • End-to-End M&A HR Leadership: Conducted HR due diligence, integration planning, and execution.
  • Fractional CHRO Support: Led HR function, aligned HR with PE operating priorities, and coached leadership.
  • HR Team Build-Out: Assessed existing talent and hired Regional HR Manager and Sr. Payroll & Benefits Manager.
  • Payroll & Benefits Transformation: Moved payroll/benefits ownership from Finance to HR and built compliant processes.
  • Internal Controls Framework: Performed first-ever payroll, benefits, 401(k), and HSA audits and created consistent audit cycles.
  • Policy & Governance Enhancement: Updated policies, created new procedures, and enforced consistent HR standards.
  • HRIS Optimization: Reviewed and reconfigured HRIS settings and reporting; partnered with HR team to develop systems excellence.

OUTCOME

The company successfully integrated acquired employees, eliminated compliance risks, and established a properly governed and scalable HR function. enhanceHCM uncovered more than $150K in undisclosed seller liabilities, recovered over $78K in payroll and benefits errors, identified and corrected $55K in unremitted 401(k) contributions plus lost earnings, and created a repeatable governance model to ensure ongoing compliance. With a strengthened HR team, defined processes, and audit controls in place, the company is now positioned for continued growth and future M&A activity.