Challenge

A private equity-owned biopharma data intelligence firm had recently been recapitalized and required assistance with:

  • Post-close accounting requirements.
  • Calculation of net working capital adjustments.
  • A 13-week cash flow forecasting model.
  • An ASC 606 revenue recognition impact analysis assessment.
  • Drafting audited consolidated financial statements and footnotes.
  • Documenting the accounting treatment of stock-based compensation awards issued as part of the transaction.

How We Helped

Biovell delivered a comprehensive assessment of the company’s finance and accounting function and also made itself available for on-call technical accounting services. This entailed close collaboration with the CFO and key process owners to implement a series of robust testing procedures.

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With a detailed analysis of the transaction nuances uncovered by the assessment, the team was able to:

  • Prevent net working capital leakage.
  • Determine opening and closing balance sheets.
  • Prepare technical accounting memos.
  • Ensure audited consolidated financial statements were issued in accordance with debt covenants.
  • Draw up a roadmap for meaningful and enduring operational enhancements.

Results

Focusing on both the immediate complexities of the transaction and the long-term scalability of the company’s goals, our team of hands-on experts delivered value throughout the organization, including:

Increased finance function ROI: A robust, future-ready OCFO roadmap helped to drive sustainable operational improvements that supported the longer-term growth and scalability goals of the company’s finance & accounting functions via:

  • 21 strategic initiatives prioritized and recommended.
  • 7 key processes streamlined and enhanced.
  • Organizational structure transformation.
  • Strategic IT investments to achieve a future-state delivery model.

Improved forecasting: A 13-week cash flow forecast, a variation analysis bridge to the company’s budget, automation of the capital structure and cash receipts/disbursements, and various analyses (e.g., actual-to-forecast; trended DSO/DPO) generated sustainable, repeatable forecasting and close execution.

Stronger compliance and controls: A detailed NWC true-up analysis identified errors in deferred revenue and unbilled receivables, among other areas, and supported the successful adoption and implementation of ASC606 compliance.