Provided finance integration support to $2.5B PE platform

Provided finance integration support to $2.5B PE platform

A platform company (the “Buyer”) of a NYSE-listed investment fund (“Parent”) with revenues of approximately $2.5 billion purchased a set of businesses (the “Target”) from another private equity firm (the “Seller”). The purchase price was roughly $1 billion. The Buyer and Target operated on different systems, different jurisdictions, and differing levels of sophistication within their finance functions. The Buyer and Seller signed a TSA to run for up to 18 months across primarily accounting, finance, and IT.

The Buyer had never taken on an acquisition of that size. The Buyer performed SEC reporting, as it was a significant holding of the Parent. The Target had no SEC reporting capability and did not close its books on an adequate cadence.

Stout proposed finance function integration services to prepare for Day One and Day 100. Among services proposed and delivered are the following:

  • Finance integration management office
  • TSA management and exit-planning
  • Financial reporting readiness
  • Management reporting rationalization
  • Net working capital and cash flow forecasting
  • Partial-year budget build for incoming entities
  • SOX readiness assessment of incoming entities
  • Opening balance sheet and acquisition accounting memos
  • Inventory costing policy alignment
  • Revenue recognition, leases, and other significant policy alignment

Stout quicky won the trust of the client by demonstrating a deep understanding of finance function integration and showcasing a team with deep experience both within both industry and professional services. We continue to work with the Buyer and Parent as a long-term integration partner.