Case Study
Accelerated First-Time Audit of Business Unit Carve Out
Manufacturing + Distribution
INDUSTRY
45
EMPLOYEES
$10M
ANNUAL REVENUE
Background
Our client required a first-time audit of a business unit carve out in preparation for sale of units to separate third parties. S+H Consulting was engaged to manage the client’s execution of these strategic initiatives.
Objective
- Determine appropriate & supportable allocation methodology for business unit carve out.
- Prepare carve out financial statements, roll forwards and reconciliations for audit.
- Prepare deliverables for multi-use: audit completion and diligence by prospective buyer.
Solution
- Prepared project plan with detailed tasks and timelines required for 90-day audit window and achieved commitments to deadlines.
- Reviewed various allocation methodologies with company & determined appropriateness for each level of financial activity by business unit.
- Coordinated balance sheet reconciliations, income statements, account analysis and footnote preparation with auditors and geographically dispersed staff.
- Prepared multiple reconciliations and analyses. Drafted financial statements with footnotes and schedules.
- Assisted with stock valuation determinations for business units with multiple parent company transactions, both public and private.
- Reviewed proposed audit adjustments and determined appropriateness for posting, noting or passing. All proposed adjustments were not significant to the financials.
- Drafted presentation materials for sales packets and responded to questions from potential buyers in a restricted timeline environment.
Clean audit option on first ever audit of carved out business units in a 90-day window.
Download pdf
Share this post
Article Tag 1
Article Tag 2
Article Tag 3
Article Tag 4
Knowledge Hub
Implemented Inventory Planning
TSA Separation of Carve-Out Purchase
EBITDA Scrub + Addback Restatement
Annual Budget Implementation
$43.2M Working Capital Dispute
