Skip to main content

International PEO: A Tool for Private Equity Groups Post COVID-19

By May 7, 2020September 7th, 2022No Comments
graphic skyline

In the past, global expansion proved to be a difficult endeavor for most business owners. It means getting up to speed quickly on local employment law and regulations while spending a considerable amount of money and time on resources to ensure your investment results in a net gain. For most, the initiative isn’t worth the investment.

In today’s global world, businesses are now able to expand their existing footprints into new international markets with an innovative solution known as International Professional Employer Organization (PEO). International PEO, also known as an Employer of Record (EOR), simplifies the challenges associated with global expansion and bypasses the need to establish an entity.

In particular, the private equity community partnered with Velocity Global to extend its global footprints on behalf of its portfolio companies.

Private equity groups that are operationally-focused leverage International PEO for new market entry in order to:

  • Quickly establish a presence. Once a candidate is identified, International PEO can have them working for you in as little as 48 hours. This solution cuts the time it takes to enter a foreign market by up to 90% when compared to creating a foreign subsidiary.
  • Reduce costs. International PEO can be up to 60% cheaper when compared to creating a foreign subsidiary, allowing companies to better utilize their budgets in global markets.
  • Mitigate risk. Using in-country expertise helps to mitigate liability and employment-based risks. With this proactive approach to compliance, firms anticipate potential issues and ensure your company, IP, and employees are protected in foreign markets at all times.

Leading financial sponsors: Tap International PEO to unlock value and drive ROI

International PEO will prove to be the “shot in the arm” that private equity groups need to get back on their feet after a brutal economic down cycle. Because of its low-risk flexible structure, International PEO helps sponsor-backed employers to offload all HR-related matters in complex foreign markets, all while maintaining full day-to-day operational control over its workforce.

This diversification of risk allows investors to focus on revenue growth and development while freeing up internal resources that are otherwise focused on maintaining operational compliance in foreign jurisdictions. Additionally, International PEO doesn’t require a long-term commitment, meaning businesses have the ability to enter or exit markets easily, and with less associated cost when compared to entity setup.

Use International PEO to accelerate out of an uncertain business environment.

The COVID-19 pandemic exposed ineffective portfolio operations and made the current environment difficult to navigate for private equity firms. They must now adapt to “the new normal”  with agile solutions that cater to these unprecedented circumstances.

For private equity firms, the new playbook must include innovative solutions like International PEO. International PEO offers a risk-adjusted approach to establishing a presence in new markets, even during choppy economic waters in order to achieve:

  • Speed to market, ahead of the competition
  • A sustainable, cost-effective approach to global expansion
  • Greater value and maximizing exit ROI

Private equity firms can still move forward with their expansion plans by working with a trusted International PEO partner. Velocity Global can help establish your global presence faster and more affordably then entity setup. To learn more about our International PEO solution, get in touch.