Provided finance integration for complex PE platform acquisition

Provided finance integration for complex PE platform acquisition

Stout provided finance integration, technical accounting, and valuation services to a private equity-backed portfolio company with $600 million in revenue. The company acquired six different entities across Europe that each had an outsourced finance function.

At the start of the acquisition, Stout performed an assessment of the target’s finance function coordinating across multiple time zones. Stout professionals interviewed finance leadership for each of the six entities and assessed the target’s capabilities across people, process, and technology. Key business process areas of focus related to record-to-report, order-to-cash, and procure-to-pay. Stout rapidly assessed the target’s finance function and updated the company’s leadership on potential integration and reporting risks associated with the acquisition and included a roadmap and timeline of solutions to address those risks.

Based on the assessment performed, Stout also created the company’s first finance integration playbook and managed the overall finance integration while supporting the company with ad hoc requests (e.g., networking capital, chart of accounts mapping, etc.). In conjunction with managing the integration, Stout performed the valuation and provided technical accounting services (e.g., technical accounting memo, closing and opening balance sheet, etc.) in compliance with ASC 805, Business Combinations.

As part of the integration, Stout helped the company optimize the finance function by helping with the enterprise management (EPM) selection. Stout was engaged to help guide the client through the software selection process and support implementation planning. Stout also conducted stakeholder interviews and gathered user requirements that were used to inform vendor demos and develop vendor scorecards.

Additionally, Stout helped the client select the best fit solution and identified potential gaps and risk areas for the implementation process, as the client’s timeline left little room for error. Stout’s support allowed the client time to focus on day-to-day activities while remaining confident they selected the appropriate tool.

The breadth and quality of Stout’s services helped instill confidence and trust between the company’s leadership team and Stout’s project teams. As a result, the company continually looks to engage Stout and plans to use Stout’s services for all future integrations.