Blog archives

Helping Private Equity Firms Maximize Investments(September 2018) View/Download the Entire Newsletter (PDF) »   The demand for fast, actionable data continues to increase on all fronts –especially for sophisticated investors like private equity firms whose pre- and post-transaction reporting requirements often exceed the capabilities of their fast-growing targets.     An assessment of a target’s accounting and financial maturity can add valuable insight into a target’s ability to satisfy the private equity firm’s immediate needs and long-term objectives.   The Challenge It’s a scenario familiar to all private equity firms: A fast-growing target’s prospects might be outstanding, but it will often not have the infrastructure or skills to provide the fast, actionable data PE firms require – requirements that will challenge the target to augment existing financial and business processes or implement new ones almost overnight. And while the highly skilled specialists assisting pre-transaction – auditors, lawyers, bankers, etc. – […]

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ERP and the Gap Between Accounting and IT(June 2018) View/Download the Entire Newsletter (PDF) »   ERP applications – once reserved exclusively for Fortune 500 companies – are now available to companies of all sizes and stripes. But, with a dizzying array of options and an implementation path strewn with potholes, first-time users can find it challenging to jump onto world-class platforms. With a gap now between what accounting requires and what IT can provide, lessons are emerging to help point companies of all sizes toward best practices and outcomes.   As technology becomes more cost effective and increasingly offers services along with products, the once exclusive world of ERP applications – formerly the domain of Fortune 500s with their large budgets and larger technical staffs – has become accessible to companies of all sizes. From startups to midsized, businesses today can jump onto world-class platforms without the burden of […]

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Tales from the Revenue Recognition Front(September 2017) View/Download the Entire Newsletter (PDF) »   With the clock ticking closer to the witching hour, companies are still all over the map when it comes to implementing the new revenue recognition standard. A poor implementation risks significant consequences to financial results, stakeholder confidence and reputation. Lessons are emerging that can help point companies toward new best practices and outcomes.   I’m worried. In meetings and discussions, our BlytheTeamSM revenue recognition experts are hearing exactly what the accounting media are reporting – that a lot of companies aren’t prepared to implement the new worldwide revenue rules. Because we at Blythe Global Advisors are in the midst of helping several companies implement the new standard, I thought I’d use this newsletter to summarize some of our early observations from the revenue recognition front – real-life examples of why some companies are having difficulty getting […]

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The M&A Mini-Series: Avoiding the Backlash of Accounting Implications (January 2017) View/Download the Entire Newsletter (PDF) »   Day One was a resounding success. But, if you’re inclined to take a deep breath and relax, think again. You’re now flying without a net. How well you navigate the first few reporting periods depends on how thoroughly you’ve researched, documented and aligned everything that went before.   In my last newsletter – part three of my four-part “M&A Mini-Series” – I discussed how an early start on integration planning and implementation led by seasoned experts can enable transition to the new entity with the fewest number of surprises. In this newsletter, I’ll move on to the last of the four interoperable requirements – accounting implications that can crop up during negotiations – and how this issue can make or break your deal depending on how well you and your team identify […]

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The M&A Mini-Series: Capturing Synergies Right From the Start (July 2016) View/Download the Entire Newsletter (PDF) »   The contract is signed. The company’s potential is greater than ever before. The company is now also more vulnerable and under intense pressure to get the deal off to a fast start. Integration planning and implementation is another critical element of every M&A journey. Success depends on an elite corps of battle-tested professionals with the know-how to align disparate potential into a seamless, synergistic reality – an effort that needs to start long before the contract is signed.   In my last newsletter – part two of my four-part “M&A Mini-Series” – I discussed deal structure analysis. Specifically, I discussed why the accounting team that was assembled during due diligence was also critical to identifying future accounting problems, risks and opportunities during deal structure negotiations. In this newsletter, I’ll move on to […]

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The M&A Mini-Series: Accounting’s Role in the Deal Structure Phase (February 2016) View/Download the Entire Newsletter (PDF) »   Buyers and sellers shouldn’t think they’re out of the woods once the due diligence phase has been completed. The deal structure analysis phase has its own unique minefields. Success often depends onan inclusive team beyond just “dealmakers,” precision on every negotiating point and strong communications.   In my last newsletter – the first scenario of my four-part “M&A Mini-Series” – I discussed the due diligence phase. Specifically, I discussed the unique issues and lessons learned when the target’s financial results have never been subjected to an audit because it is either the subsidiary or business unit of a larger company or a very closely held private company. In this newsletter, I’ll move on to the deal structure analysis phase and discuss a recurring theme that can present hurdles for buyers, targets, […]

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