IPO Audit for an Efficient Exit
By helping our client resolve accounting issues at a portfolio company well in advance of a potential exit, the SEC filing went smoothly and the company sold for over $300 million to a Canadian public company.
The client: Private equity firm looking to switch from a Big Four provider to a national firm that could provide a single point of contact and greater attention to its portfolio companies at a better value.
The issue: An entrepreneurial energy services company with potential for an IPO exit had critical accounting problems.
The solution: RSM's domestic and global resources made us a perfect fit to audit the firm post-acquisition. Assurance professionals helped upgrade the portfolio company's accounting systems and policies, converted the books to be in accordance with GAAP and educated financial officers on the requirements for hedge accounting.
When our client started negotiating with a publicly traded company based outside of the U.S. to sell the portfolio, we quickly brought in our colleagues at an RSM member firm, and coordinated with their team and our national SEC practice to ensure that the accounting was in alignment with SEC requirements.
The public filings in went smoothly in both countries and the portfolio was sold to the public company.