Managing Audit and Transaction Accounting Complexities for a PE-Backed Construction Products Company
-
February 06, 2025
-
A private equity-backed construction products company faced an urgent need to complete its audit and issue financial statements to meet its lender reporting requirements. A key challenge was the client’s recent acquisitions of multiple facilities in the industry, for which no accounting or valuation work had yet been performed. Adding to the complexity, the client was in a state of significant transition, including navigating significant changes in its financial reporting environment. The stakes were high, and the organization turned to FTI Consulting for crucial audit, valuation and accounting support.
Our Impact
- By swiftly preparing detailed opening balance sheets for the acquisitions and developing financial statement purchase accounting adjustments, FTI Consulting enabled the seamless integration of the acquisitions into the client’s financial statements.
- Within weeks, our team ensured the timely completion of the audit by proactively responding to auditor inquiries, conducting hands-on working sessions and managing the client’s complex circumstances.
- Our expertise in navigating complex financial transitions proved vital to providing the necessary accounting, valuation and audit support to meet the client’s reporting deadline.
Our Role
- FTI Consulting was engaged to address the client’s complex accounting challenges related to a major transaction, including preparing an acquisition accounting memorandum and developing the opening balance sheets for the acquired manufacturing facilities under relevant accounting guidance.
- FTI Consulting executed and delivered rapid valuations of the acquired assets, despite limited on-hand information from the seller, and prepared ready-to-record adjustments for purchase price accounting and year-to-date depreciation and amortization.
- Our experts also provided the client with comprehensive guidance and support, facilitating the preparation of financial statement disclosures addressing the transaction and the implementation of the new leasing standard.
Related Insights
Published
February 06, 2025
Key Contacts
Senior Managing Director, Co-Leader of SEC Accounting & Advisory
Senior Director