Mark Sinatra, CEO of Aspen HR, brings a unique blend of HR leadership, investment banking, and consulting experience to the table. In this Q&A, he shares some common HR missteps, and how Aspen HR helps independent sponsors drive value creation through strategic HR integration, compliance, and scalable solutions. Read on.

Q: What are some of the most common HR missteps independent sponsors make, and what strategies can help them avoid these challenges?

Independent sponsors often focus heavily on deal sourcing, capital raising, and operational improvements—but HR considerations can easily fall by the wayside. One common pitfall is underestimating the importance of early talent assessments. Sponsors may rely too heavily on incumbent leadership without conducting a thorough evaluation of the team’s ability to scale with the business post-acquisition. This can lead to misalignment in vision, cultural friction, or underperformance down the line. To avoid this, sponsors should prioritize comprehensive talent due diligence early in the deal process, not just post-close. Engaging with experienced HR consultants or using structured leadership assessments can provide valuable insights before critical decisions are made.

Another frequent misstep is delaying key hires, especially in finance, HR, or operations roles. Independent sponsors often operate lean, which makes it tempting to hold off on hiring until issues arise. But this reactive approach can create bottlenecks that hinder growth. Instead, sponsors should build a clear talent roadmap aligned with their investment thesis, identifying which roles are mission-critical within the first 100 days. Proactively recruiting or retaining top talent not only strengthens execution but also signals to stakeholders—including lenders and co-investors—that the sponsor has a long-term, scalable plan in place.

Q: How did your experience as a searcher/independent sponsor prepare you to be a CEO?

As a searcher and independent sponsor, you have to be scrappy, creative, and resourceful. You're constantly selling yourself. I remember frequently hearing objections during my search—things like “you don’t have capital” or “you don’t have experience.” That forced me to sharpen my pitch and clearly explain to business owners and bankers why I had the right to acquire over other buyers. That resilience and communication clarity have translated directly into my role as CEO, especially when it comes to building relationships with prospective clients and partners.

Q: How do you create enterprise value for independent sponsor-led companies?

At Aspen HR, we support independent sponsors in two main ways:

1. PEO Offering: Our large group health insurance, payroll, HR platform, and compliance solutions help portfolio companies manage HR cost-effectively as they grow. We're typically 20–30% more cost-efficient than building a large internal HR team—especially for companies with fewer than 500 employees.

2. HR Due Diligence: We perform flexible, fee-based HR audits and benefits reviews pre-close. This allows sponsors to identify and address HR compliance issues before acquiring a platform or add-on.

Q: How does Aspen HR uniquely serve the needs of independent sponsors?

At Aspen HR, we have a dedicated value creation team with deep experience supporting roll-ups and navigating the complexities of stock vs. asset deals, carve-outs, and other nuanced transactions. We develop tailored HR integration plans that give independent sponsors confidence in a smooth employee transition post-close.

Our clients also benefit from complimentary access to our in-house employment attorney, providing expert guidance without additional cost. What truly sets us apart is our white-glove service model;  we don’t rely on call centers or chatbots. Instead, our team delivers highly responsive, personalized support, with executive involvement readily available whenever issues arise.

Q: What HR mistakes do you help independent sponsors avoid?

Post-close, we help sponsors identify and address critical HR compliance risks, ranging from I-9 documentation issues to worker misclassification. During add-on acquisitions, we proactively prevent common integration challenges such as payroll misalignment, inconsistent HR policies, and conflicting benefits plans. Beyond risk mitigation, our bundled large-group benefits and streamlined HR/PEO solutions also drive measurable EBITDA improvement, making HR a key contributor to value creation.

Mark will be leading a roundtable on “HR Integration in Roll-Ups” at the 2nd Value Creation Summit on June 4th in NYC. Don’t miss this opportunity to dive deeper into the strategies that help sponsors unlock operational efficiency and value creation from day one.