Transition Accounting and Back Office Standup for a Large Energy Company
Challenge
In recent years, declining electricity prices have squeezed margins for wholesale power generation companies. These cost pressures, amidst other challenges, contributed to one of the largest US wholesale power producers filing for bankruptcy and consequently needing to be restructured. The complex arrangement included a separation from its parent company, a debt restructuring, and transitioning into a fully-functioning, standalone business.
How we helped
Working with an ecosystem of partners tasked with helping the company through the restructuring, Riveron was engaged to provide transition accounting services, including running the accounting department on an interim basis, designing the future state accounting function, managing the cutover to the new company operations, and providing additional services in support of the restructuring effort.
Run accounting department on an interim basis
Operated all accounting functions during the transition
Developed model to support and reconcile balance sheet
Created, reviewed, and approved journal entries
Deployed budget and forecasting process
Design the future state accounting function
Developed roles and responsibilities for interim and steady-state staff
Redesigned processes
Established policies to strengthen controls
Defined new ERP system requirements and user security
Manage cutover to new company operations
Migrated data and performed master data clean-up
Trained permanent staff
Transitioned select processes offshore
Established KPIs
Stood up the finance and accounting functions in new
ERP environment
Results
Riveron partnered with the company to successfully transition through the restructuring deal and operationalize a new, optimized accounting and finance function, with streamlined processes, automation of key tasks, and a new ERP system.
- Completed the full month-end close process in 10 days
- Onboarded and trained over 25 permanent employees and 50 offshore resources to takeover operations
- Delivered the opening balance sheet and instituted fresh start accounting
- Provided accurate and timely financial information to key stakeholders, including financial statements for auditors
“The Riveron team was instrumental in supporting our complex reorganization and fast-paced separation. The synergies afforded by Riveron’s integrated approach to standing up and managing our finance and accounting function and handling all accounting-related matters enabled me to focus my efforts on maximizing value for all constituencies in the bankruptcy and carve out.”
Chief Restructuring Officer & Executive VP of Finance