There are many factors to consider when undergoing an M&A transaction of a division or portion of a larger business. Determining standalone, clean, and GAAP-compliant financials for the divested business units is a necessary step. We help sellers and investors understand the standalone financial performance and potential value of a separated entity, supporting strategic decision-making throughout the transaction.

  • We prepare financial reports that show the financial position, performance, and cash flows of a separated business unit as an independent operation, allowing stakeholders to assess its true standalone value. Additionally, we provide clarity around intercompany transactions and the post-close impact on future performance and operations.

  • We provide an understanding of expenses allocated between the parent and divested business unit. This offers an unbiased understanding of the divested unit’s potential profitability. We can assist you in constructing the go-forward operational framework and assist you with identifying expenses that may or may not be needed for the standalone entity.

  • We facilitate operational handovers by obtaining and defining an understanding of services, functions, and costs necessary for a division to operate as a stand-alone business. When drafting service agreements, our work is used to identify essential support the parent company will continue to provide, ensuring a smooth transition and continuity as the new entity builds independence.