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Implementing Scalable Technologies and Integration Processes for a PE Fund

With a robust roadmap that includes scalable and optimized processes, Paceline is now better positioned to pursue future acquisitions for the associated fund and grow the business.

Challenge

Paceline Equity Partners, LLC, a Dallas-based private equity fund manager, was in the process of managing the acquisition by an affiliate of  a transportation and rail business unit from Caterpillar, a global construction machinery and equipment company. Since many of the target’s business functions—IT, finance and accounting, and purchasing—had historically been run out of a shared services center, the carved-out business required help to become a standalone entity. As Paceline pursued the acquisition, it needed to identify right-sized business applications and establish and implement scalable, best practice processes that would accelerate growth to support future-state business functions.

How We Helped

Riveron was engaged to develop and execute a technology roadmap, which included a rapid fit/gap analysis, system selection, and implementation of new business applications, in addition to standing up the accounting organization. As part of the roadmap, we implemented a new NetSuite environment to serve as the single enterprise resource planning (ERP) solution for all businesses, which included a leasing platform. Additionally, we assisted with day one accounting entries, month-end close, and the design of financial reporting processes for the carved-out business. During the standup of the new company, Paceline managed another potential acquisition by the same fund of a similar company for which Riveron was engaged to perform financial, operational, IT, and tax due diligence. After that target was acquired, Riveron developed and executed on a playbook to integrate the company, including operational synergies, people, processes, and technology.

Results

Working in lockstep with the Paceline acquisition team, we implemented and integrated NetSuite as the platform to support multiple business lines in an accelerated timeline. This enabled Paceline to quickly stand up the new organization and for the carved-out entity to separate from its parent company and operate on its own without disruption to its end customers. By accelerating the overall timeline, Paceline was able to exit its transition separation agreement (TSA), which further reduced expenditures, and support its business from a financial and systems perspective despite minimal staffing. With a robust roadmap that includes scalable and optimized processes, Paceline is now better positioned to pursue future acquisitions for the associated fund and grow the business.

Ready to Connect?

Our experienced professionals provide critical support during periods of transition, from operating the accounting function to designing the future state and managing the cutover. Contact us to learn more.