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ZEROCHAOS CASE STUDY

ZEROCHAOS CASE STUDY

 
OVERVIEW

ZeroChaos is a pioneer in the Professional Payroll, Outside-Labor Risk Management, and e-Staffing businesses. The Company serves Fortune 1000 clients across industry sectors.

OPPORTUNITY

ZeroChaos enjoyed double-digit growth for the prior three years and was led by an outstanding leadership team. However, the Company needed to diversify its customer base and build its access to capital sources to prosecute potential tuck-in acquisitions.

OUR APPROACH

APCP is bullish on the long-term opportunities in the outsourcing sector. Partnering with the leadership team to acquire ZeroChaos, APCP was also able to leverage its relationships within its immediate network both to enhance ZeroChaos’ relationships with existing clients and to offer new business development leads. APCP also leveraged its financing partners to provide ZeroChaos with the access to capital required to effectively execute tuck-in acquisitions.

RESULTS

Through the combined efforts of APCP and the Leadership Team:

  • Jul. 2005: ZC ousts industry leader, Manpower, for $150 million IBM contract, world’s #1 procurer of IT labor.
  • Oct. 2005: ZC makes the Inc. 500 list of the fastest growing US companies, ranking at #71 overall and #3 of 32 in the Human Resource Outsourcing sector.
  • Jan. 2006: ZC acquires New York-based FlexCorp Systems, an +$80 million provider of strategic payrolling and management solutions for contractor workforce; FlexCorp ranked #119 on the Inc. 500 listing.
  • Jan. 2007: ZC quadruples revenue in 2 years and adds major global Fortune 500 clients.
  • Jan. 2008: ZC achieves fourth straight year of record earnings with major expansion globally driven by client demand, even within the context of a dramatic decline across the industry.
  • Jan. 2009: ZC achieves record earnings for a fifth straight year in a row amidst industry-wide declines and global credit crisis.
  • Jan. 2010: ZC continues delivering record earnings and acquires 3 new firms, adding RPO, screening, and healthcare industry experience.
  • Dec. 2010: ZC achieves approximately $1B in gross revenue. APCP sells ZeroChaos to Snow Phipps Group, delivering a 16.2x to LP’s in 6 years.