CHC Platform
Finding the substance the spreadsheet leaves out. A five-component human-capital value index (HCV) that scores workforce health for private-equity targets before close.
ProblemHuman capital is usually the biggest driver of value in a buyout and the least quantified input in the deal memo. Post-merger integration failures often trace back to culture and workforce issues, yet most deal memos treat human capital as narrative context rather than a structured diligence input — because no structured, scoreable instrument exists.
SolutionThe CHC Platform turns workforce risk signals into a single composite (the HCV Index), bounded 0–1, from five independent sub-components, each drawing on a different data layer. The output is a Cultural Health Certificate — a PDF that sits in the data room next to the financial and legal diligence, with a four-tier classification (GREEN / YELLOW / ORANGE / RED) and a narrative flag section.
Implementation / progressIn development, targeted at private mid-market companies at $50M–$500M EBITDA, where Glassdoor, 10-K, and analyst signals are thin. It anchors on public-record signals and primary survey data collected during diligence. Sector normalisation against industry benchmarks is in progress; until it lands, scores are most meaningful within a single sector. The framework explicitly disclaims predictive ability.
The five-component HCV index
Tenure & Departure Signal
Seniority distribution and departure velocity from primary survey responses, weighted by role tier and functional criticality.
Business Disruption Risk
Passive external signals — job-posting velocity, WARN Act notices, OSHA citations. A WARN notice triggers a hard score floor.
Survey-Derived Signal
Anonymised survey of a stratified employee sample — twelve validated questions on leadership trust, psychological safety, and intent to stay.
Velocity & Growth Signal
Headcount trajectory, role-expansion ratios, and hiring patterns, normalised by sector baseline and company stage.
Market Comparator Signal
Sector peer benchmarking via PACER employment litigation, executive-departure events, and public peer data.
What is provisionalThe platform is proposed / in development. Sector normalisation against published benchmarks has not yet landed, so scores are currently most meaningful within a single sector rather than across deals.
What it does not claimThe HCV Index is a descriptive diagnostic, not a predictive model. It does not claim to forecast deal outcomes, and it is not investment advice. Target segment: roughly $400–600B annual US PE volume in the mid-market (PitchBook, 2022–2024).