Case Study

WilliamsMarston Clears the Way for Divestiture with Technology Innovation

Learn how WM helped a multi-national public industrial kitchen equipment manufacturer sift through transaction data as they performed a carve-out and divested a large piece of their business.

The Challenge

Intertwined financial transaction data, comingling with legal entities and diverse tech ecosystem made a clean divestment impossible.

A multi-national public industrial kitchen equipment manufacturer determined the time was right to divest a piece of its business, which was not previously operating as a discrete business unit. The manufacturing company was forced to evaluate financial transaction data that had yet to be tagged or delineated between the divesting business unit and the remaining business entity.

With a high-volume of commingling across legal entities and locations, specifically around inventory items, the company found themselves at a crossroads. Complicating matters further, the company’s overseas operations were subject to different systems, data sources and manual consolidation and all accounts receivable (AR) and accounts payable (AP) processes were comingled, serviced and tracked within regional shared-service centers. In an internal effort to unwind the data, the company’s internal IT team attempted to segregate the balances and activity for several months before engaging outside help.

The Solution

In-depth data warehouse exploration and technical scripting introduced a path forward for the company’s successful carve-out.

WM immediately gained access to company’s data warehouses to better understand the structure and potentially relevant data tables available. The team compiled, tested and documented carve-out methodology through the joining of financial, operational and non-financial data.

WM scripted an automated carve-out solution through a combination of Python and SQL script that could be utilized as a basis for U.S. GAAP reporting and the deal trial balance for all periods presented for the carve-out entity. The team also utilized technology to build year-over-year account analytics for comparability and carve-out review purposes. Post-transaction close, WM utilized scripted tools to support the divested business through the closing statement process and period(s) covered by the Transaction Services Agreement.

The Result

WM fixed the issues with the historical data and reporting, leading the company to a successful divestiture and ensuring a clean audit opinion was issued.

Within a 4–5-week timeframe, the base carve-out trial balances for all three periods presented were compiled, pre-pushdown of manual closing accruals. A clean audit opinion was issued on all historical periods included in carve-out financial statements and the company experienced a seamless closing statement and transition period.

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“I could not have made it through our initial public offering without the team from WilliamsMarston to field so many complicated issues. You have been fantastic, and it’s been a pleasure to reach this milestone with you!”Chief Financial Officer
IPO Company

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“I am sure we had one of the most complicated preferred stock conversions at our IPO than any other company. We appreciated your help. You made us look good, and we look forward to continuing to work with you.”Chief Financial Officer
IPO Company

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“I wanted to share my thanks for all the work WilliamsMarston did. Thanks to your great work, I felt confident going into the audit prepared.”VP Finance
Private Company

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Public Company

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