SELL SIDE READINESS: PREPARING FOR A FIRST TIME AUDIT FOR ACQUISITION
Client Needs: Audit Readiness for Acquisition
Founded in 2009, OVS Group is a software and services company providing integration and automated workflow solutions for oil and gas clients operating in conventional and unconventional plays worldwide.
When a strategic acquirer approached OVS, the deal was conditional, in part, on an audit by a Public Company Accounting Oversight Board (PCAOB)-compliant audit firm, as mandated by the Buyer’s Big 4 audit firm, within 60 days of signing the term sheet. Like most fast-growing technology companies, OVS dedicates its resources to delivering technology and process innovation – to one of the most complex industries in the world – and not to building an innovated finance and accounting function.
OVS needed a solution to (i) convert two years of finance and accounting records from a cash, primarily tax-focused, system to accrual (GAAP) ahead of the audit; (ii) lead fulfilling all audit requests, (iii) not just prepare the “books” for a year-end audit, but ensure any adjustments needed for the audit were incorporated into the 24-month historical accounts on a monthly basis to expedite the Buyer’s due diligence quality of earnings analysis; and (iv) identify process and reporting opportunities to improve the finance and accounting function regardless of whether or not the deal went through.