Case Study

Privately held B2B Software Company Completes Transition to PE Ownership



Client Situation

A well-established, privately-held B2B software company completed the sale of majority interest in the company to a private equity firm. Having never been required to operate in a GAAP-compliant environment or subjected to a formal audit, the company needed assistance in completing various transitions of financial processes required by, and satisfactory to, a PE investor. This included establishing GAAP-compliant accounting capability, specific purchase accounting and valuation policies, engagement and management of a first annual outside audit, development of lender covenant reporting, and monthly management and investor reporting systems. 


A E78 executive was engaged to lead the transition, with defined goals to identify and retain appropriate outside audit and valuation resources, determine and properly record required purchase accounting transactions, and lead the internal team to determine and implement process and transaction recording changes necessary for transition to full GAAP-compliant accounting. Separately, a set of internal and external reports were developed to focus the company on the KPIs important to company and investor success, and to satisfy lender reporting requirements.


  • The company successfully transitioned to new investor and management control without disruption to sales and profits
  • Groundwork was laid to permit a smooth transition to the new CFO replacing the prior CFO, who was retiring

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