Case Study

WilliamsMarston Clears the Way for Divestiture’s Timely Stand-Alone Financial Statements

Discover how WM assembled carve-out financial statements for a $4 billion multinational public company’s $200 million business.

The Challenge

Limited capacity, elaborate operations and an unyielding deadline made the delivery of carve-out financial statements an endeavor.

When a $4 billion multinational public company with an already stretched team needed a set of carve-out financial statements for one of its $200 million businesses, the task was far from straightforward. The carve-out business had never operated on a stand-alone basis, had international operations and a defined benefit pension plan, and its treasury operations were commingled with the parent company.

To complicate matters further, the acquirer’s Form 8-K required two years of audited and most recent unaudited comparative interim financial statements to be filed within 75 days of closing the deal. 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.

All in all, the company needed guidance.

The Solution

WM arrived on-site, working collaboratively with the auditors and sellers to meet financial statement deadlines, as well as support the acquirer with the filing of its Form 8-K.

WM worked on-site at the seller’s headquarters to support the preparation of the audited annual and unaudited interim financial statements.

Analyzing the parent’s corporate expenses, WM developed and documented a methodology to allocate expenses to the carve-out business. The team also assessed the parent company’s stock-based compensation (SBC) and identified the allocation of SBC expense to the carve-out entity, including a detailed footnote.

WM developed subsidiary-level cash flow statements in functional currency and combined them into a USD financial statement cash flow. Next, the team developed an audit-ready consolidation and cross-walk from the parent’s records to the carve-out entity’s stand-alone financial statements.

In addition to supporting the sellers, the WM team also supported the acquirer in the preparation of the Form 8-K including the pro forma financial statements.

The Result

With the required financial statements issued, the acquirer’s continued regulatory compliance and on-going access to the capital markets was ensured.

WM facilitated the successful issuance of the audited stand-alone financial statements and assisted the acquirer with filing its Form 8-K, well before its deadline, safeguarding the acquirer’s continued compliance with SEC regulations and ongoing access to the capital markets.


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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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