Supporting the Sell Side & Transaction Process for a Consumer Electronics Business
A leading global consumer electronics manufacturer and distributor to big box retail chains and online marketplaces was placed into a sale process by its private equity sponsor. The Company recently completed a large merger and hadn’t fully integrated the new business, which resulted in semi-autonomous regional teams and disparate data sources, controls, and policies. The Sponsor engaged Accordion to prepare the Company for a sale process and to provide ongoing analytical transaction and diligence support throughout the process. This included taking a leadership role in the preparation of materials (e.g., management presentations), providing ownership of the financial model and projections, developing a comprehensive data room for due diligence, and fielding diligence requests on the fly.
M&A Execution Support
Financial Statement Preparation & Analysis
- Assisted the Company in providing accurate and timely responses to all diligence requests by interested parties and deal advisors and acted as a quarterback for the overall due diligence process.
- Collected and organized data to analyze the historical performance of the business and facilitate the creation of the transaction model and financial materials including:
- Operating model and projections reconciled to QOE.
- Monthly financial trending (e.g., income statement, balance sheet, cash flow statement, capex, working capital) and subsequent updates to interested parties.
- Business segment trending and gross margin by product, category, customer, and geography.
- Key operational metrics and business performance (e.g., gross margin bridges, volume rebates and allowances analysis, synergy achievement and tracking, revenue visibility, SG&A composition and trend).
- Provided leadership in the reconstruction of the product SKU database and data exports to support diligence requests, including business segment trending analytics.
- Collected and organized data room diligence documents from departments throughout the Company including Operations, R&D, HR, Legal, Marketing, Sales, and IT.
Accordion prepared cohesive financials, analytics, and transaction marketing materials for the sale process by navigating and resolving widespread financial and product data challenges due to the Company’s recent acquisition. Our team worked with management across the finance function and all functional units (Operations, R&D, HR, legal, Marketing, Sales, and IT) during presentations and diligence meetings to fulfill all requests and prepare responses. We continued to provide ongoing support to the management team and the Sponsor as negotiations continued.