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High risk, high reward.

Learn how Amesto Global successfully helped a US Private Equity Company
navigate a complicated multi-country acquisition during a recent Carve out.

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A CASE STUDY

TSA Management for US Private Equity Company.

Transitional Services Agreement | Multi-Country Acquisition | Carve Out

A US Private Equity Firm had recently undertaken a Carve out of a European-based business in the Media Intelligence space. The acquisition was multi-country, spanning 6 European territories with a Transitional Services Agreement (TSA) in place for Year 1.

By their nature, TSA Arrangements require careful navigation to ensure Buyer and Vendor teams, cultures and jurisdictions are transitioned both effectively and efficiently. A fundamental in this is the smooth transition of the core Finance Function.

Amesto Global came on board for 12 months to help close the gaps and provide the support needed to navigate this complicated acquisition. We played a pivotal role in providing the 'Glue' to a respectful and successful Finance transition, at all times aligning the differing requirements and objectives of both parties to the TSA.

TESTIMONIAL

 
"The Amesto Global Project Management team built key relationships with respective in-country Finance Teams, thus securing a huge contribution from these Finance Delivery Teams which far exceeded the normal TSA obligations."
 
– US Private Equity Representative
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TSA Case Study Timeline (0-3 months)

Planning & Design: We deep-dived into the current systems to understand and construct the solutions that would best fit.

TSA Case Study Timeline (3-6 months)

Implementation - TSA Management: We assumed the role of TSA Manager to oversee the agreement and close the gaps.

TSA Case Study Timeline (6-12 months)

Implementation - TSA Migration: We assisted with the migration efforts of several countries and any acquisitions that occurred throughout the year.

Planning & Design

Governance Structure.

To start, we established a Governance Structure approved by stakeholders to ensure standards were set and procedures were followed. This structure created a framework to help build strong relationships and communication between the different countries and various entities. Having strong lines of communication and working relationships was key to this successful TSA arrangement.

Implementation: TSA Management

TSA Enablement.

When we came on board, we discovered that due to miscommunication between the acquired territories and The Company during the transition, the day-to-day finance and accounting processes were not being performed the same way. This created a chaotic working environment and many financial reporting problems. We implemented the following deliverables to streamline operations.

Key Deliverable

Cashflow Forecasting Model.

  

Problem: Each country prepared cashflow statements in a different way, leaving it extremely difficult to track the movement of cash.

 

Solution: We built a Consolidated Cashflow Forecasting Model, asking each entity to provide a 13-week cashflow projection. This allowed all entities to be coordinated under a single unified document with a clearer prediction of future funds. We then updated the CFO and Controller regularly if any issues came up.

 

 

Key Deliverable

Master Tax & Compliance Trackers.

Problem: Due to all of the acquisitions, no formal compliance measures had been established. This was also leading an unorganized working environment.

 

Solution: We created a comprehensive Tax and Compliance Tracker to act as the framework, with each country having access. This tracker outlined responsibilities & due dates, keeping everyone accountable and on the same page.

 

 

Key Deliverable

Intercompany Reconciliation.

Problem: During initial Due Diligence, The Company estimated that no inter-company transactions would exist at year end. However, at the time of the acquisition, the The Company had a large balance.

Without any uniform processes in place, each entity had their own way of handling transactions, leading to major problems and miscommunication.

Solution: We assisted with the outstanding intercompany loans and trading balances clean-up process, consolidating everything within one month.

The TSA Manager worked with each country, creating a Summary Schedule to help pay-off loans and analyze cash. The Intercompany Reconciliation is now streamlined across all entities.

 

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Key Deliverable

Debtors Tracking & Aging

Problem: One of the acquired entities had numerous customers with significant balances outstanding for more than 90 days.

Solution: We worked with in-country teams to develop an effective plan to collect aged receivables as "Cash is King" in new acqisitions. We compiled a strong team of credit collection individuals, held weekly meetings and communicated incentives to make changes to the team.

Since implementing the plan, the balance has improved significantly.

Simplifying Business

Key Outcomes.

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Solutions

We came in and helped streamline, organize and increase the efficiency of day-to-day business operations.
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Success: Short & Long-term

We suggested improvements and implemented internal processes that set the business up for success in both the short and long-term.
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SUSTAINABLE

We assisted with getting the team up-to-speed on these processes so efficiency can be sustained moving forward.

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