Complex Accounting Issues
We collaborate in the most effective and efficient manner with our clients to find the best possible solutions to their complex accounting issues. We work very closely with management and always start with a thorough understanding of the business purpose and nature of the transaction. Our deep technical knowledge and years of industry experience combined with thoughtful and practical application of the rules is the key ingredient in providing the best possible answers and solutions. If involved at the planning stage, we can also help you negotiate terms and conditions as well as understand the accounting impact of each of these. As a result of our research, we will prepare accounting memos that will satisfy the most demanding internal and external reviewers.
Areas where we have deep knowledge and expertise include:
- Revenue Recognition, including complex licensing and collaboration revenue arrangements
- Financial Instruments, including embedded derivatives
- Business Combinations
- Variable Interest Entities
- Goodwill and Intangible Assets
- Impairment Analysis
- Lease Accounting
- Equity Accounting
IPO Services
The IPO event is the most exciting and challenging time for our clients. We collaborate up-front with our clients to ensure that all accounting and financial related tasks are completed timely and effectively. Our services range from IPO accounting and audit support to through the preparation and filing of the Registration Statements on Form S-1 and S-4, inclusive of advising and drafting any and all SEC initial and response comment letters:
Pre-IPO audit support, including:
- Resolving complex accounting issues and preparing accounting memos that will pass the audit over by the Company’s independent auditors
- Preparing and/or reviewing of audit support schedules
- Preparing quarterly financial statements
- Performing basic and fully diluted EPS calculations
Preparing the Registration Statements (Forms S-1 and S-4), including coordination with the Company’s bankers, attorneys and independent auditors.
Preparing responses to SEC comments and discussing and resolving them with independent auditors and if required, the SEC.
Preparing filing amendments to the Registration Statements, as required.
Preparing detailed and informative presentations for management and Board of Directors.
Internal Controls
Internal controls over financial reporting become exponentially more important as a company grows and matures and looks to prepare for an IPO. While compliance with the rules is a must, the thoughtful application of rules is key in streamlining the core process and minimizing the costs compliance.
We help our clients with every aspect of internal controls, including:
- Identifying risks, including categorization based on level of significance to the associated financial statement account
- Identifying relevant controls and any control gaps
- Assessing the design effectiveness of relevant controls
- Testing relevant controls for operating effectiveness
- Evaluating identified design and operating effectiveness deficiencies
- Identifying and implementing remediation steps
- Advising on process and controls improvement opportunities, including the rationalization over the number of controls
- Preparing thorough documentation of all of the above, including accounting process memos and detailed process flow-charts
Our goal is to solve the problems - finding a missing relevant control could be easy, but working with process owners and helping to design and implement a control that is aligned with business goals versus being a burden is what really distinguishes us.
Valuation Services
We help clients navigate complicated valuation-related tax and financial reporting requirements and collaborate with management to assist them in creating more informed business decisions involving valuation related matters. We build tailored financial forecasting and valuation models aligned with Fair Value and Fair Market Value best practice guidelines to meet the specific needs of the engagement, including withstanding the rigorous external audit process and procedures. We have experience and extensive knowledge with sophisticated financial and valuation models employing Monte Carlo simulation, decision and risk analysis, and advanced statistical modeling techniques.
We have deep knowledge and expertise in valuations for:
- Mergers & Acquisitions / Business Combinations / Asset Acquisitions and Impairments
- Business Enterprise and Equity Value
- Term Loans and Convertible Debt with complex features and embedded derivatives
- Contingent Assets and Liabilities, including Contingent Consideration
- Intellectual property and intangible assets
- Preferred and Common Stock, Warrants and Options
- Stock-based Compensation
- Incremental Borrowing Rates
Special Projects
We perform wide range of special projects, but there are two that we specialize.
Mergers and Acquisitions – it is usually an important business and accounting event and we are there to help our clients to:
- Perform financial due-diligence of a target company
- Review draft agreements to identify complex issues and solutions upfront
- Research regulatory filing requirements, identify possibilities for exemptions or reduced requirements and help to pre-clear with SEC
- Prepare required filings, including carve-out financial statements
- Identify opportunities for hold-back of contingent consideration
- Integrate finance and accounting policies and procedures
Restatements – this can certainly be a very challenging time for any company, when we are engaged to assist management team to overcome the comprehensive technical work streams associated with restatements. We will bring a highly integrated and dedicated team working "around the clock", identify and resolve all issues, research filing requirements, coordinate with attorneys, independent auditors and audit committees, while ensuring the timeliest restatement of filings possible, such that the trust and creditability of the Company’s financial reporting processes can be quickly restored.