![]() See the section titled “Description of Capital Stock” for additional information. ![]() ![]() The Class B stockholders will have the ability to control the outcome of matters submitted to our stockholders for approval, including the election of directors and the approval of any change of control transaction. Immediately following the completion of this offering, the outstanding shares of our Class B common stock will represent approximately % of the voting power of our outstanding capital stock, assuming no exercise of the underwriters’ option to purchase additional shares. Following the completion of this offering, each share of our Class B common stock will be convertible into one share of Class A common stock at any time and will convert automatically upon certain transfers or, if earlier, upon the tenth anniversary of the completion of this offering. Holders of our Class A common stock and Class B common stock will generally vote together as a single class, unless otherwise required by law or our amended and restated certificate of incorporation. We then applied this same ratio to the approximately 40 million employees working at companies with less than 100 employees in the United States to estimate that there are roughly 29 million addressable employees in our core target market. This represented 74% of the total employees reported by BLS for 2020. Using this data, we identified that there are approximately 97 million employees working at companies of any size excluding the agriculture, state and local government, federal government, educational services, wholesale trade, mining, construction, and manufacturing sectors. To account for this, we cited the total employment statistics from BLS for 2020, which are available on a per industry basis. Within this segment, our core target market also excludes certain industries. To calculate this estimation, we identified that there are approximately 40 million employees working at companies with less than 100 employees, our target customer size, in the United States, according to the U.S. We estimate our current annual addressable market size to be $40 billion. ![]() In addition, the complexity of assembling a diverse range of plans and options for employees makes utilizing a PEO model increasingly attractive for SMBs. Research by the National Association of Professional Employer Organizations (“NAPEO”) showed average annual health benefits cost savings of 37% per employee for businesses using a PEO versus those that do not. This complexity and expense has made PEO services more attractive. According to a survey conducted by Aon, the average medical plan premium has increased approximately 8% annually over the past 10 years. At the same time, small-group insurance premiums have been rising quickly and consistently. Moreover, regulation at the federal, state, and local levels can change materially and suddenly with the introduction of a major new piece of regulation, such as the Affordable Care Act (“ACA”). For example, together, New York and California passed more than 35 new employment laws that took effect in 20. This does not include the large and growing number of regulations that businesses need to comply with on a state and local level. There are currently more than 180 federal employment laws.
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