Professionalized the disparate, non-GAAP accounting practices of a PE-backed company’s first 7 acquisitions, preparing the company to pass its initial audit and integrate future purchases
After initially acquiring and combining three founder-led manufacturing and industrial service companies within a highly fragmented heavy machinery sector, a private equity firm began quickly executing its strategy for industry consolidation. It bought five more of the sector’s family-owned companies over the next nine months.
With further investment opportunities lined up, the firm needed a veteran accounting professional with extensive acquisition accounting and manufacturing expertise to simultaneously complete its initial integrations, absorb three purchases waiting in the pipeline, and prepare the accounting staff to manage future acquisitions efficiently and accurately.
The PE firm engaged Focus Search Partners’ interim accounting consultant to navigate the inevitable growing pains that arise from quickly acquiring multiple family-owned businesses with non-GAAP accounting practices and lack of policies and procedures.
With extensive experience working for both public and private manufacturers and managing their complex acquisition accounting, he knew exactly how to extract the existing business data from all seven acquired entities and transition it into one cohesive GAAP-compliant accounting structure. At the same time, he used his vast knowledge base to train the accounting staff, significantly elevating their skills and enabling them to maintain and grow that new structure as the PE firm continued acquiring additional companies.
Our consultant took a hands-on approach to gathering and accurately capturing the necessary data of the firm’s initial seven acquisitions to prepare for the company’s first-year audit.
He also enhanced accounting processes and implemented appropriate internal controls to ensure complete and accurate data collection for the three subsequent acquisitions and all future ones. Both the financial data and the accounting team now confidently support the PE firm’s investment objectives through consistent and consolidated GAAP reporting.
acquisitions now consistently integrated
entity controllers following GAAP standards
audit successfully passed examination