Understanding Operations to Expedite Integrations
March 11, 2020
< 1 Minute Read
Our client was acquiring the billing services of companies where they had existing distribution partnerships. They needed a third party to provide accounting due diligence to understand the accounting operations of these acquisition targets.
They needed a top-to-bottom understanding of accounting operations and historical financial activity on their potential acquisitions. RGP delivered a full due diligence report and enabled them to successfully integrate the businesses after closing.
What We Did
- Reviewed the target company’s historical financials to determine potential financial issues, analyzed profitability and cost structure, identified key balance sheet trends, and documented accounting policies and procedures.
- Analyzed data and conducted in-person interviews with the target’s key accounting and finance teams.
Determined potential gaps to address during integration and advised on potential Transition Services Agreement considerations. - Delivered an executive presentation summarizing findings and recommended actions and a due diligence report.
Impact
- Recommended integration considerations based on process or policy gaps such as bonus calculation and payments.
- Identified financial considerations to address during purchase agreement negotiations (e.g., inventory value on date of close).
- Helped ensure business continuity upon close by advising on Transition Services Agreement considerations, such as duration for the target’s payroll services.
- Enabled our client to complete two acquisitions, positioning them well to integrate the businesses upon close.