Case Study: Buy-side Due Diligence For Middle Market Private Equity Firm
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Business Issue:
Riveron’s client began with an agreement to purchase several homebuilding product distribution centers from a large multi-national conglomerate, and a plan to sell the newly formed business through a public transaction. The deal leader contacted us to assist with the acquisition, carve-out, and IPO preparation.
Riveron Approach:
We began our engagement by providing financial due diligence and analysis in evaluating the assets targeted for acquisition. Evaluation of the assets proved challenging, because no stand-alone financial records were maintained for the distribution centers, either individually or as a group. However, we were able to assist our client by evaluating the quality of assets and margins of the business and modeling pro forma business expenses of the go-forward entity. Ultimately, we assisted our client in recreating financial statements for these previously unaudited operations, successfully led the business through a stand-alone financial statement audit by a Big Four firm, and prepared all other necessary documentation needed for an S-1 filing.
Benefit to Our Client:
Given our experience with carve-outs, financial statement audit preparation, and initial public offerings, we were able to assist our client with a multitude of steps toward the S-1 filing. By completing a project that was deemed impossible due to the challenging business circumstances, unavailability of stand-alone records, and aggressive timelines, we were commended by our client, earning a long-term, loyal business relationship.
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