Manufacturer & Distributor of Industrial Motor Parts Drives Post-Acquisition Integration Success & Efficiency via Finance & Accounting Function Standardization & Rework 

Overview 

The client – a manufacturer and distributor of industrial, specialized, and commodity parts – engaged Bridgepoint for post-acquisition integration support. 

Bridgepoint was selected by the client due to our ability to identify risks and opportunities, develop a clear plan for executing desired outcomes, and provide experienced personnel with specialized expertise to execute and guide the client through the project. 

Business Challenge 

The client is a PE portfolio company comprised of several entities acquired and operated by the platform’s HQ company and was looking to grow both organically and through additional acquisitions, leverage single back-office functions, and increase their buying and selling power. 

However, the client was unable to achieve this goal due to issues stemming from a lack of in-house expertise and resources (including the departure of the controller), misconfigured legacy systems from prior acquisitions, an inability to complete balance sheet reconciliations, no existing processes for month-end closing or documentation, and an upcoming annual audit.   

Approach 

Bridgepoint’s engagement with the client initially started with an interim controller to manage day-to-day operations before identifying a need to bring other consultants on to the team for support. 

Our team then worked closely with the client to identify end goals alongside current procedural gaps to develop a plan for combining people, processes, and systems. 

Next, our finance and accounting consultants caught up on all the balance sheet account reconciliations for the client’s full fiscal year, implemented standard accounting best practices such as close checklists, calendars, and reporting lists, and developed Standard Operating Procedures (SOPs) to ensure knowledge could be efficiently transferred to existing staff. 

Parallel to these efforts, our team also spearheaded and completed most of the work for the client’s upcoming annual audit with no material weaknesses, achieving the deadline set by the PE firm and related debt covenant. 

In addition, our consultants supported the client by booking purchase price allocation entries, preparing equity roll-forwards, and implementing OneStream. 

Results 

After engaging Bridgepoint, the client was able to complete their upcoming audit and meet the debt covenant’s deadline, avoiding negative debt covenant issues and saving millions. 

In addition, our team was able to reduce the client’s closing process from 15 business days to 8 while providing the client with streamlined, documented processes across the finance and accounting function, trained staff, and the improved use of existing and new systems that empowered their ability to scale. 

The work of our consultants empowered the client to foster efficiency, improve working capital, and retain focus on the goals of their past and future acquisitions. 

Services Provided 

• Post-Merger Integration Support 
• Process Improvement & Documentation 
• Audit Readiness and Support 
• Interim Controller