Achieving A New Level of Fitness After The M&A Deal Closes 

2 Min. Read

The Hard Part Seemed Over—the Acquisition Was Completed—but The Accounting Involved Would Test the Bandwidth and Expertise of the Existing Team 

At A Glance 

Company Type: Private, mid-size 

Industry: Consumer products and virtual health care services 

Solution Area: Strategic Projects, Audit Support, Technical Accounting, Mergers & Acquisitions 

About The Client 

A successful commercial and residential fitness equipment company was eager to incorporate newly acquired digital health and fitness programs into their offerings. 

Challenge 

A U.S.-based seller of fitness equipment to homes and businesses had just made an exciting acquisition—an international digital health and fitness platform that would expand its reach, customer base, and revenue. 

As the management team worked on integrating the new offerings into the business, it became clear that the accounting team needed some help with their new situation and the range of challenges that arise with M&A transactions. These included recording the acquisition; centralizing the accounting function in the U.S.; conforming and formalizing accounting policies and procedures; and integrating accounting on a single ERP system. And they needed to manage what would be the first-ever audit for either entity. 

They were missing the capacity and expertise to bring all these essential steps to the finish line on a timely basis. 

Solution 

ZRG consultants with M&A experience, technical and operational accounting expertise got the team through these challenges, so that the newly combined company could move on to business as usual: 

• Took a project management approach toward integrating the accounting for the newly combined companies, formalizing policies and procedures, and getting the books and records in shape to sail through the audit 
• Provided technical expertise to determine proper accounting entries and disclosures for purchase accounting, and implemented several significant accounting standards 
• Converted acquired company’s accounting records from international accounting standards to US GAAP 
• Mapped disparate chart of accounts within a centralized accounting system 
• Closed all accounting periods subsequent to the acquisition 
• Produced consolidated financial statements 
• Developed accounting policies and streamlined processes 
• Produced documentation for account balances and significant transactions that would meet auditors’ expectations 

Results 

• Fully integrated, centralized accounting function 
• Accounting policies documented and implemented 
• Audit-ready financial statements with supporting documentation 
• Meaningful management reports produced on a timely basis 
• A mentored, stronger accounting team 

ZRG was an invaluable partner in getting the accounting for the newly combined business integrated, powering through its initial audit, and then setting up the team with a practical process for producing ongoing financial reports on time. ZRG ensured the accounting got taken care of and freed up management to focus on other ways to bring value to the business.