For mechanical contracting companies, acquisition by a capital partner can bring many advantages, including greater ability to bid on big projects and expand into new markets. However, one of the most significant advantages often goes overlooked: by offering a platform of shared services, the right capital partner can help reduce risk.

When a business grows, so does the level of risk it faces. Compliance requirements become more demanding, cybersecurity threats increase and payroll becomes more intricate. These are all areas where contractors may experience increased vulnerability, but enterprise-level shared services can provide a level of protection.

Risk mitigation through a shared service platform

For an example of how shared services minimize risk, just consider payroll. Payroll errors can be extremely costly, and thankfully they can largely be avoided through a centralized payroll process. That’s something capital partners can deliver.

When capital partners bring established back-end infrastructure, it typically means a high level of standardization. It means proven processes and internal systems for handling payroll, ensuring accuracy and precision. It means contractors no longer have to figure out things like labor laws and reporting requirements all on their own; they have direct access to credible resources and expertise.

All of this helps decrease the fines and penalties that can arise from inconsistency or from administrative errors, which in turn helps safeguard the contractor’s reputation and profitability.

Cybersecurity is just as perilous. Contractors can be prime targets for hackers, and many contractors lack the resources they need to ensure their digital assets are safe. Shared IT services typically mean more robust security measures, more consistent backups and more regular system upkeep, all without the contractor having to become an IT expert.

These are just a few examples of the risks that mechanical contractors face, and of how a shared service platform can keep those risks in check. Find out more about the advantages of working with a capital partner by contacting Foundral today.