Background

A large, family-owned consumer products company is acquired by private equity in a $600M leveraged transaction.  Financial due diligence identified pervasive issues with legacy accounting practices.  While audited by a regional accounting firm, several accounting issues were identified pre-closing. Big 4 audit firm referred Paradigm to manage the purchase accounting, improve financial reporting, and manage the controllership function on an interim basis.

Solutions

• Accounting advisory for complex accounting issues with significant estimates
• Discovery and remediation of inventory issue
• External audit support and coordination
• Opening balance sheet
• Accounting for profits interest plan
• Financial statement preparation
• Development of fully-integrated lender deal model for rating agency presentations to expand credit facilities in connection with the add-on acquisition of a public company carve-out

Outcomes

The Company significantly improved its financial reporting and successfully closed the add-on acquisition of carved-out product lines from a publicly-traded seller.  Additionally, a more robust internal finance and accounting team was built to handle the ongoing accounting and reporting functions with new institutional ownership.