Providing a team to perform transition services after a divestiture
Interim and project professionals you can rely on to get the job done
A large medical device company divested a business unit. The transaction included providing an extended period of transition services to the buyer. A parallel accounting function was required to segregate the divested business unit from ongoing operations. Aventine Hill Partners was engaged to help make the accounting and finance transition successful.
Collaborating with key accounting personnel from the company, the structure and resource requirements for the transition services team were defined before the divestiture closed. Utilizing our Project and Interim Solutions capabilities, we quickly provided accounting and finance professionals to assist in achieving an accurate transaction cut-off for both balance sheet and P&L items.
The company cloned its ERP system to create a separate accounting system for the divested business unit. The transition accounting function was established utilizing management from the company and a team of six consultants from Aventine Hill Partners with expertise in corporate accounting functions, including month-end close, cut-off procedures, and tax support.
For more than a year, the transition team performed a full range of accounting functions. Month-end close and financial reporting was coordinated and performed. A/R and A/P processing was kept current. Balance sheet reconciliations were maintained. The buyer's accounting department was provided with financial information required to consolidate its own financial statements.
With the assistance of Aventine Hill Partners, this company was able to quickly create and support a complex and extended transition services agreement for a divested business. The transition was cost-effective and ongoing business operations were not impacted by the transition requirements.
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