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The demand for fast, actionable data continues to increase on all fronts –
especially for sophisticated investors like private equity firms
whose pre- and post-transaction reporting requirements often exceed
the capabilities of their fast-growing targets.
An assessment of a target’s accounting and financial maturity
can add valuable insight into a target’s ability
to satisfy the private equity firm’s immediate needs and long-term objectives.
It’s a scenario familiar to all private equity firms: A fast-growing target’s prospects might be outstanding, but it will often not have the infrastructure or skills to provide the fast, actionable data PE firms require – requirements that will challenge the target to augment existing financial and business processes or implement new ones almost overnight. And while the highly skilled specialists assisting pre-transaction – auditors, lawyers, bankers, etc. – provide enormous insights into a target’s health, there’s a gap: There’s no assessment of vital aspects of a company’s accounting and financial maturity – in other words, its ability to progress quickly from a “2” to an “8” to satisfy PE reporting needs.
Here are just a few of the critical aspects of a company’s accounting and financial infrastructure that can make or break an investment – pain points every PE firm should know before a transaction is completed.
- Can the company produce timely, accurate financial statements? Does the finance staff possess the skills to prepare monthly, quarterly and annual reports? Does it have a history of reconciling books and records on a regular basis?
- Does the company have adequate and scalable accounting systems in place? How many processes are automated? Is there an accurate forecast model in place that’s analyzed to actual results?
- Does the company’s executive team have the experience to establish and maintain new banking relationships or to execute future transactions?
At Blythe Global Advisors – a full-service accounting advisory firm – we have the resources and expertise to fill the gap between the reports provided by auditors, lawyers, bankers, etc. and the quality of a company’s accounting and finance organization. We’re talking battle-tested veterans of the M&A wars who know where to look and what to look for to develop a comprehensive diagnosis of the target’s ability to stand up a professional, scalable function capable of meeting the PE firm’s rigorous reporting requirements.
Our services include:
- Assessment of the company’s accounting and technical infrastructure – current capability and scalability.
- Evaluation of staff – professional and technical expertise, size of organization, etc.
- Analysis of the company’s ability to provide monthly, quarterly and annual reports efficiently, accurately and on time.
- Appraisal of the company’s executive management team in terms of expanding financial responsibilities.
- Blueprint – if necessary – to upgrade accounting competence and achieve audit readiness including recommendations on hardware and software, systems and skills, training, interim management, etc. – all aligned to the PE firm’s goals.
- Professional services as required – interim CFO/VP/controller, project management, interim staff, training, etc.
Why Choose Blythe Global Advisors – The BGA Difference
With BlytheTeamSM, our alliance of former Big Four partners/executives, current industry entrepreneurs, and former corporate finance and accounting senior executives/professionals, we combine extensive knowledge of U.S. and international accounting principles and regulations with a critical differentiating factor – our experience as former chief financial officers, controllers and vice presidents of finance across a wide variety of industries.
This combined experience enables us to evaluate the kinds of highly significant, esoteric issues that can be overlooked under the best due diligence to give PE firms a full picture of what it will take for a target to achieve the PE firm’s objectives. Our approach is:
- Bottom-line driven.
- Fast – concentrated on enabling the internal team to assume full responsibility as quickly as possible.
- Set on the future – aligned with the PE firm’s goals and timelines.
- Team-centric and minimally disruptive.
- Flexibly priced.
Select Private Equity Firms Whose Clients BGA Has Helped Improve Accounting Competency
A Legacy of Sustaining Value
Our clients can attest that we hit the ground running. We always leave clients ready to meet reporting obligations and better positioned to reach strategic objectives. Beyond the project metrics and checklists, we leave a footprint that includes knowledge transfer, best practices, and infrastructure and process improvements – all of which enable clients to support future growth, make investment decisions with confidence and convey their companies’ true value to stakeholders. That’s a return on investment beyond budgets and timelines.
At Blythe Global Advisors, we have a proven track record
of helping investors complete transactions with confidence.
When you need expert advice and counsel, please call us.
We’d be delighted to talk with you.