Case Studies

Pre-Transaction Accounting Clean-Up

Background

A multi-location, dental services organization engages Paradigm pre-transaction after a referral from the buy-side diligence firm.  A financial sponsor planned to acquire a controlling interest in the Company, however, buy-side diligence identifies several material issues during the pre-close period.  These issues were material and would prevent a transaction closing if unaddressed.  Paradigm is engaged by the Company pre-close and ultimately retained by the Company post-close for First 100 Day services.

Solutions

  • Remediated multiple billing system and accounting deficiencies
  • Process for revenue recognition and accrual-based financial reporting
  • Integration of two add-on practice acquisitions acquired prior to closing
  • Closing balance sheets and closing statement schedules
  • Opening balance sheet model and supporting schedules
  • Designed and implemented a standard chart of accounts for all entities to support consistent financial reporting
  • Designed bank and sponsor financial reporting packages

Outcomes

Addressed finance and operational issues that negatively impacted revenue, earnings, and collections.  The transaction moved forward to a successful closing and Paradigm’s assistance both during the pre- and post-close periods enabled management and the financial sponsor to put more focus on strategic initiatives and worry less about the tactical execution of work streams required to support managing a leveraged business with more robust financial reporting requirements.

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