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.
The Challenge 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?
- 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.
- Bottom-line driven.
- Operations-focused.
- 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.

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.
Call us at 949-757-4180.