Impact Story: Divestitures
A $4 billion multinational public company needed a set of carve-out financial statements for one of its $200 million businesses.
- The carve-out business had never been audited on a stand-alone basis
- The parent company’s finance group was short-staffed
- The carve-out business had international operations, a defined benefit pension plan, and the treasury operations were commingled with the parent’s
- The acquirer’s Form 8-K required 2 years audited and most recent unaudited comparative interim financial statements to be filed within 75 days of the deal closing
- The Form 8-K also required a pro forma P&L for the most recent full year and interim period as well as a pro forma balance sheet
- WilliamsMarston’s team worked collaboratively with the auditors and sellers on-site at the seller’s headquarters to prepare the audited annual and unaudited interim financial statements
- Analyzed the parent’s corporate expenses and developed and documented a methodology to allocate these expenses to the carve-out business
- Analyzed stock-based compensation at the parent and identified the allocation of SBC expense to the carve-out entity including a detailed footnote
- Developed subsidiary level cash flow statements in functional currency and combined them into a USD financial statement cash flow
- Developed an audit-ready consolidation and cross-walk from the parent’s records to the carve-out entity’s stand-alone financial statements
- Prepared the Form 8-K including the Pro forma financial statements
WilliamsMarston facilitated the successful issuance of the audited stand-alone financial statements and assisted the acquirer with the filing of its Form 8-K well in advance of its deadline ensuring the acquirer’s continued compliance with SEC regulations and on-going access to the capital markets.