Private Equity Firm Engages DLC for GAAP Compliance and MD&A Solution for Business Acquisitions

Overview

A private equity firm engaged DLC during two business acquisitions to assist with closing preparations, including balance sheet, net working capital threshold calculation, and preparation for Management Discussion & Analysis (MD&A). 

Project Background

National Private Equity Firm was in the process of acquiring two businesses in the infrastructure rehabilitation industry, with a value of ~$10 Million in revenue. Independent CPAs managed finances for the two companies focused on fiscal year tax solely with an accounting system primarily run on a cash basis. Plus, the firm required a closing balance sheet, working capital threshold calculation, and opening balance sheet in conjunction with the closing.

The need became apparent for additional resources and processes in the interim until an internal team could be hired, aligning with the other companies in the PE firms portfolio, managing in decentralized environments.