Planning & Executing a Smooth SaaS Carve-Out
The Situation
A sponsor was acquiring a SaaS company carve-out from a listed corporate entity and chose Accordion as their partner to head the separation management office (SMO), lead the finance function stand-up, and serve as interim CFO. Our team worked shoulder-to-shoulder with the Sponsor and Management to plan for the carve-out, focusing on Day 1 and supporting the development and negotiation of the transition service agreement. Standalone costs estimates and interim operating procedures focused on the finance function were also key deliverables. After Day 1, the focus shifted to the standing-up of an independent finance function with key workstreams including a budget, financial reporting, bank reporting, onboarding a new CFO, and ERP selection and implementation.
Services
Carve-Out Planning & Execution
Sell-Side Readiness
Merger Integration Planning & Execution
The Execution
- Supported Management in setting up the business standalone for Day 1 and leading the finance function.
- Developed and managed a detailed plan to stand up the key functions, including IT, HR, legal, and finance.
- Implemented an interim finance function where Accordion professionals played key leadership roles, including FP&A support and interim CFO.
- Drafted the go-forward finance organizational design, ready for the incoming CFO to execute.
- Immediately assessed the closing and operational standalone requirements.
- Collaborated with Management to develop a streamlined pre-close execution process to address complex IT, operational, and finance requirements.
- Maintained a detailed, task-oriented stand-up plan as part of the SMO effort, including managing the buyer’s professional relationships to avoid duplication and reduce fees.
- Provided finance expertise for the new ERP system implementation and process re-engineering related to the finance function, including training and transition to the new Finance team.
The Results
Accordion played a key role in getting the business ready for Day 1 as a standalone business, managing the overall separation effort, creating the plans for an independent finance function, and executing and running the function until the full-time team was in place. Our team identified the right cost structure led to the appropriate bid and balance sheet funding, and achieved limited disruption to the core business for Day 1 and beyond. The Company recouped $9m in value for client through findings in discrepancies of seller’s accounting policies relating to revenue recognition and commercial aspects of selected agreements. Our team helped developed a robust finance function foundation, on which the team and the rest of the business could rely.