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Success Story - Purchase Accounting

Performing purchase accounting for an acquisition within tight deadlines

Accounting and Finance professionals you can count on to get the job done

A large oilfield services company was being acquired by a private equity group. The company and PE team did not have the required expertise or available resources to perform purchase accounting reconciliations and adjustments within the required deadlines. They came to Aventine Hill Partners for assistance.

Our Solution

We provided Accounting and Finance professionals highly skilled in purchase accounting and the detail analyses required to recommend accurate adjustments. Expert oversight from our Practice Director addressed the most complex issues and assured clear communication among the various stakeholders who would review and approve the adjustments.

The pre-sale balance sheet of the company being acquired was in need of reconciliation and a complex purchase agreement also required multiple working capital adjustments to be computed to support the sale.

  • Every balance sheet account was reconciled and adjustments recommended with detail support for both timing and GAAP adjustments. The team validated all changes with the purchase agreement.

  • After collaboration with the outside valuation company, the opening balance sheet was developed. This required new asset depreciation schedules and intangible amortization to be set up for the new company.

  • The closing balance sheet was reconciled with all purchase price adjustments in advance of the 60 day deadline. This included support needed to be reviewed by an outside third party.

  • The third party reviewed the documentation provided by Aventine Hill Partners and agreed with the list of adjustments for both the GAAP adjustments and the adjustments due to the purchase agreement. 

Results

Supported by the expertise and sense of urgency from Aventine Hill Partners' Accounting and Finance consultants, the company and private equity firm were able to complete all accounting for this strategic transaction within the required deadlines and cost effectively.

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