Post-Acquisition Accounting & Integration for a Leading Consumer Packaged Goods Company

Challenge

A leading public company in the pharmaceutical and consumer packaged goods space acquired and merged with a private company — following recent acquisitions of two other public companies. This acquisitive growth strategy strengthened the acquirer’s position as a market leader.

The acquired private company needed to transition from private company accounting to accounting under IFRS (International Financial Reporting Standards) and establish financial close and reporting structures. However, the acquiring company’s accounting function could not take on the large volume of work. In addition, the acquired company was implementing a custom ERP system (placed on hold upon acquisition) and was experiencing internal turnover at critical positions, hampering the project.

How we helped

Solutionsthink was engaged to develop a step-by-step work back plan and lead the private company through the financial reporting, audit preparation, technical accounting, and finalizing the purchase accounting. We filled the leadership gap in the acquired company’s accounting function, provided financial reporting and project leadership and stood up the month-end financial close process. We designed and introduced sub-ledger engines for revalued capital assets and lease accounting and helped produce the acquired company’s consolidated IFRS trial balance and financial reports. We developed technical accounting positions and acted as the primary liaison between the external auditors and management for technical questions regarding the transaction, asset valuations, right of use assets and lease liabilities, opening balance sheets, and monthly/quarterly operations. We implemented detailed financial reporting schedules and drafted technical memos and templates to streamline and standardize key accounting processes. In addition, we standardized accounting and finance roles and responsibilities, hired staff and provided training for critical areas, including the financial close process, revenue recognition, accounts payable, accounts receivable, property plant and equipment, leases, physical counts, inventory accounting and controls, and intercompany accounting.

Results

Solutionsthink helped the acquired company navigate its first audit of IFRS financial statements, establish a monthly and quarterly financial close cadence, and achieve its external reporting deadline. This reduced the monthly financial close process from four weeks to two and a half weeks and the quarterly close to within three and half weeks. In addition, with our help, the acquiring company was able to consolidate the results of the acquired company and report within 90 days of our project start date.

Competency

Public Company Finance Function Stand-up, Finance Transformation.

Focus

Post-Merger Integration, IFRS Adoption and Project Management, Sub-ledger Engine Development for Capital Assets and Lease Accounting, Staff Development, Record-to-Report Discipline.