Providing CFO leadership to resolve cost discrepancies and partnership disagreement
Superior CFO Advisory services for successful accounting and finance solutions
An early stage midstream partnership was experiencing cost overruns with a large construction project. This was generating conflict between the general partner, a private equity backer, and other investors. Without a CFO in place, the partners came to Aventine Hill to provide a CFO who could determine the facts and facilitate agreement among the partners.
Our CFO Advisory Partner quickly stepped in to understand the scope of the construction project, the vendors providing services and the contracts, and the partnership arrangement that guided how costs impacted investors. A root cause of the conflict was that there was not alignment on or consistent financial reporting of the construction costs. Working with the general partner’s staff, the CFO Advisor prepared a full analysis of the construction cost of the facility.
The partners also advised that a forensic audit would be required to fully answer certain questions that were judged as critical. With an extensive network of auditing firms, the CFO Advisor quickly met with multiple firms who provided competitive proposals. After analyzing the proposals and obtaining unanimous consent of the partners, the general partner selected a national CPA firm to perform the audit.
The CPA firm conducted an extensive forensic audit based on the revised analysis of construction costs prepared by the CFO Advisor. The results were reviewed with the general partner and other investors. The constructions costs were now accepted as valid and the general partner was better prepared to manage the cost going forward.
With the assistance of Aventine Hill, this company received expert CFO level assistance that helped rebuild confidence among the investors and better positioned the construction project for success.
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