Get the integration right and avoid value leakage during M&A.
Get the integration right and avoid value leakage during M&A.
Finance Integration
Integrating or standing up finance functions within the context of an M&A transaction is a complex undertaking, often causing unintended operational challenges for the post-close entity. Typically, upon the close of a transaction, the new post-close Finance function(s) struggle to provide management with the financial data it requires to run the new combined business.
Stout assists both corporate and private equity (PE) buyers with finance-focused integration of platform companies or add-ons. We rapidly assess the incoming Finance function’s readiness to meet the demands of a new operating and reporting environment. Our team focuses on:
- Identifying critical points of failure across key finance processes (e.g., revenue cycle, accounting and reporting, purchases, and payables)
- Determining whether the current technology stack (e.g., BI, GL, CRM) is used to optimal or even standard functionality
- Assessing the capacity and competency of finance personnel and their ability to “level up” in the post-transaction environment
- Qualifying the ability of Finance to fulfill immediate and medium-term financial and management reporting requirements
During and after completion of our rapid assessment, we identify the quick wins and immediate action items to stabilize Finance. Stout and management, both at the acquiree and acquiror, collaborate to determine the steady-state target operating model that conforms to the deal thesis.
Across all aspects of Finance (FP&A, Tax, Accounting & Reporting, etc.), Stout ensures that the new Finance function is ready for Day One and Day 100.
5 Characteristics of Finance Integration
1. The new Finance function struggles with providing complete, accurate, and timely financial data for decision-support.
2. Finance is rarely a deal value driver but can be a source of value leakage post-close.
3. The transition from private to PE-owned or publicly owned can create a culture shock.
4. The rigors of accelerated financial reporting and increased management reporting can often overwhelm the incoming Finance function.
5. The incoming Finance function often has significant deficits with respect to its people, business processes, and application stack.
Our Finance Integration Services
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Who We Work With:
- The CFO and Office of the CFO
- Corporate development
- PE principals
- Portfolio companies of PE funds
