FTI Consulting Supports $1.55 Billion PE-Backed Automotive Chain Debt Offering
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December 03, 2024
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Following the merger of two major automotive collision repair chains under the ownership of a leading private equity sponsor, the combined company sought to capitalize on favorable market conditions through a 144A private-placement debt offering.
The company faced a challenging timeline and required support in drafting and refining its offering memorandum as it simultaneously transitioned to an integrated financial reporting function. These challenges were compounded by the new requirement for the company to begin reporting to its prospective lenders on a quarterly basis, as well as the need to resolve technical accounting issues related to equity compensation for the newly merged entity. The company turned to FTI Consulting’s SEC & Accounting Advisory Practice for help achieving timely audit completion and completing their offering memorandum.
Our Impact
- With guidance from our team, the client completed its audits in line with the transaction timeline, positioning the company for ongoing financial stability and compliance.
- Our team’s support enabled the client to launch the offering memorandum on schedule, allowing them to leverage optimal market conditions and secure favorable pricing, and to better position their capital structure for future growth.
- Our advisory services provided ownership and management with an extra layer of confidence in the accuracy and timeliness of the company’s financial reporting, helping them navigate technical complexities and preparing them for continued quarterly reporting requirements.
- Through specialized accounting expertise and comprehensive project support, our team helped the client successfully complete its debt offering, laying a strong foundation for the newly merged company’s growth and expansion.
Our Role
- Collaborating with the company to prepare the offering memorandum, including pro forma financial information and MD&A disclosures. This allowed the company to effectively communicate its financial position and performance to investors.
- Advising on complex accounting issues related to the company’s new equity compensation plan, helping to navigate and establish correct treatment in alignment with accounting standards.
- Assisting the company in its transition from annual to quarterly financial reporting, ensuring compliance with current and future financial reporting obligations.
- Providing project management and audit support, ensuring that audit completion aligned with the offering’s rapid timeline.
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Published
December 03, 2024
Key Contacts
Senior Managing Director, Co-Leader of SEC Accounting & Advisory
Senior Managing Director, Co-Leader of SEC Accounting & Advisory