Background

A global public business entity spins off its North American operations, which are acquired by private equity in connection with a larger investment into the parent’s remaining international operations. The complex nature of the transaction results in numerous complex technical accounting challenges and management engages Paradigm to assist with the preparation of the opening balance sheet as well as the documentation of all technical accounting matters associated with the transaction.

Solutions

• Opening balance sheet model and supporting schedules
• Preparation of footnote disclosures for financial statements
• External audit support
• Working with an external valuation firm to address complex issues, including bargain purchase gain

Outcomes

The identification of complex elements of the transaction early in the process and hands-on approach to working with management and external valuation specialists proves to be the difference.  Our client successfully completed their first-year audit on time and with minimal changes to the opening balance sheet.