Overview

The Company provides outsourced, human resource (“HR”) services and departmental management for clients seeking sophisticated, responsive HR capability without incurring the increasing fixed cost of developing full time internal resources. 

The value proposition is compelling: the Company provides customers with the expertise and capability of a Fortune 500 HR department, for approximately half the cost of hiring internal HR capabilities.

The market for outsourced HR services is large and expanding with almost three-fourths of all companies outsourcing at least one HR function.  The Company’s target market in the Houston metropolitan area alone consists of over 17,000 small and medium sized businesses (“SMBs”).

The Company has developed an operating model that demonstrates proven value for both the customer and the Company. The client service delivery and staffing system used by Company is internally scalable while providing compelling margins and growth opportunities in this rapidly expanding outsourcing arena. 

Founded in 2002, the Company has operated out of a single location in Houston, Texas while it has refined its selling proposition, built its operating model, and developed profiles for matching client needs to the Company’s internal capabilities.  The Company has over fifty clients and serves over 10,000 client employees with an internal service delivery staff of ten.  

Consistent with its value proposition, the Company’s business model requires significant face-to-face interaction and presence at the client’s location to develop a detailed knowledge of the client’s operations, its needs and its people.  For this reason, the Company is seeking to increase its office footprint other major metropolitan areas as part of a highly structured expansion program. 

The Company is seeking approximately $2.5 million in growth capital to fund this geographic expansion and build revenues through a targeted marketing program that supports its market penetration into the targeted geographic opportunities.

 Market Position

As indicated below, the Company provides services in areas that are not effectively served by competing outsourced alternatives.  More importantly, the areas of core competency for the Company are high value added activities protecting the client’s business from potential liabilities and impacting profitability through effective strategic HR planning. 

By moving beyond strictly “HR domain expertise” and focusing in these higher value areas the Company reduces churn in its revenues.  The Company provides service offerings and value that are hard to duplicate by the client internally or through another outsourced alternative.  Because of the long term nature of the client relationship, replacing the Company rarely can occur without significant disruption to existing programs and processes. 

The Company is seeking to expand its brand awareness and value proposition within its target markets to support its geographic expansion.  By staking out a clear niche with the HRO spectrum the Company is poised to achieve excellent results from its marketing initiative and return exceptionally favorable economics.

For further information please contact Stephen Boane at the Ephor Group. 

Ephor Group
10400 Westoffice, Suite 114
Houston, Texas 77042
(713)) 977-3600 office
(713) 977-3610 fax
ephor[at]ephorgroup.com