Our client, a chemical manufacturing company, had been carved out from a large chemical conglomerate and sold to a private equity firm. Although the business itself was well-established, the finance and accounting functions needed to be developed from the start. Facing an urgent need to build financial structures from scratch, they asked for help from RGP.
These strategic initiatives required detailed accounting and finance activities — and a flexible, agile team that could manage the transaction-related workload without overwhelming the internal business-as-usual (BAU) teams.
Our client needed expert assistance with specialized transaction-related accounting tasks to ensure proper legal entity alignment, research accounting treatment, and deliver accurate financial reporting.
01.
Expert Transaction Support
RGP provided an embedded finance team consisting of four highly skilled consultants to support the Corporate Controller’s group through all phases of the M&A processes. This team of full-time consultants, known as the “Core 4,” was instrumental in handling critical accounting tasks for major divestitures and high-profile acquisitions, including:
- Preparing and reconciling carve-out financial statements to the ultimate reported financial information.
- Preparing and assisting with the preparation and recording of push-down accounting and/or local recording of possible proceeds for the transaction.
- Supporting the calculation of transaction Gain or Loss, given the movement of assets and liabilities.
- Specific identification of assets/liabilities to record Assets Held for Sale.
- Assisting in close-out review of share sale/conveyed entities and impacts to the equity accounts and to intercompany investments.
- Working on essential projects such as goodwill analysis and impairment assessments as well as the execution of tax step plans.
As transaction activities went through peaks and valleys, our consultants stepped in seamlessly to backfill operational roles during staff transitions or absences. This approach ensured continuity and prevented any disruption to the company’s ongoing operations.
02.
Deep Institutional Knowledge
Our consultants’ long-standing relationship with the client and deep familiarity with their processes, systems, and culture allowed them to integrate smoothly, reducing ramp-up time and enabling our client to rely on them as an extension of their own team. This also enabled them to tackle special projects outside of the core M&A work, such as a complex legal entity pushdown project that had been postponed for years.
03.
Operational Flexibility
Our core team of four consultants provided crucial backfill support, ensuring that the client’s BAU functions continued uninterrupted during busy transaction periods or staff absences. Because these tasks were treated as project work, the client was able to charge consultant costs to M&A and restructuring budgets, rather than impacting their operational earnings. This allowed them to manage project costs without adding permanent headcount.
04.
Long-Term Partnership, High-Impact Results
Over more than a decade, RGP has demonstrated consistent value, helping our client navigate numerous acquisitions and divestitures, while also assisting with ad-hoc accounting and finance projects. During this time, our consultants became the go-to team for accounting-related transaction research and questions, not only building a long-term partnership but delivering a positive long-term impact:
- Established a centralized embedded team to efficiently support current and future transactions.
- Created standard processes and playbooks to optimize the execution of future transactions.
- Facilitated efficient and effective client review of financial impact for proposed transactions.
This long-term engagement highlights the value of a flexible, embedded team of experienced professionals who can adapt to fluctuating business needs, providing essential accounting and finance support during critical growth phases.
case studies