Post-Acquisition by PE Firm: Account Reconciliation and Interim Finance Leadership

Overview

Recently acquired by a private equity firm, a new management team was brought in to lead the company. The client’s initial need was assistance with customer account reconciliation in preparation for the new accounts receivable manager that was to join the company. Additionally, the client was interviewing for key finance leadership positions which would oversee the finance team, lead financial reporting and analysis, drive the budgeting process, and be key liaison with the private equity shareholders.

DLC’s involvement occurred against the backdrop of an extended audit which had been delayed resulting from several complicated accounting issues associated with the recent acquisition and was taking a considerable amount of staff focus.

The client had several key initiatives underway but was lacking the mid-level leadership to drive implementation.  The search for key positions was taking longer than expected causing the delays and lack of leadership on key processes and new initiatives. An immediate need for management experience was required to assist in the resolution of several key matters such as:

  • Current reconciliation of customer accounts to drive collections and cash flows, current reporting, and customer account activity.
  • Management reporting packages had not been issued for several months, other period closes and reporting matters nearing.
  • General finance team leadership was lacking as a result of the vacant finance director position.
  • Implementation of a key budgeting and reporting tool was underway although limited system implementation experience existed within the finance team.