Insights > Transforming the Back-Office for a Government Service Provider

Transforming the Back-Office for a Government Service Provider

Challenge

A multibillion-dollar, private equity-backed government service provider grew inorganically with five major acquisitions over a two-year period. This left the provider with a collection of different disclosure statements, a complex technology landscape, and inefficient manual processes across the back-office functions. The disparity exacerbated challenges with the defense contractor regulatory audit, created significant overhead costs, and extended payroll and close schedules. In addition, the private equity firm was seeking an exit strategy, either through an IPO or strategic sale, and the lack of transparency into the combined financials was creating a significant roadblock to it.

How we helped

Riveron was engaged to drive efficiency, accuracy, and cost reduction by standardizing the organization’s back-office accounting and finance functions. This included implementing new policies, processes, and a consolidated financial system as well as helping the company prepare for an IPO.

1

Finance

Consolidated the indirect rate structure and assisted in updating the disclosure statements

Streamlined accounting practices across all business units

Implemented the new revenue recognition standard, project cost accounting, and labor distribution

Provided ongoing accounting support for technical matters, including derivative accounting, goodwill impairment support, and factoring agreements

Supported ongoing quarterly and annual consolidated financial reporting

2

Technology

Conducted extensive requirement gathering across the business to determine the future-state technology landscape and develop a technology implementation roadmap

Developed a new set of IT business processes, roles, and responsibilities in conjunction with company leadership

Re-implemented a consolidated Deltek Costpoint system with a re-architected chart of accounts and organization and project structures

3

IPO

Developed a consolidation and accounting methodology to allow for reporting at the level of the newly formed legal entity in place for the potential public offering

Evaluated and resolved several technical accounting issues required for transition from private to public company accounting rules

Worked closely with external auditors to facilitate the completion of the audit, including the required step-up in historical audits from AICPA to PCAOB opinions

Created financial reporting schedules and other exhibits required for SEC filings

Assisted in crafting and validating responses to SEC comment letters on the confidential Form S-1

Results

As a result of the work Riveron performed, the company now operates as one consolidated entity rather than five silos, with one indirect rate strategy, one financial system, and one set of back-office policies. The combined Deltek Costpoint system simplified and standardized processes across the business units, resulting in support and licensing cost reductions, decreased time spent in both the monthly close and payroll functions, and increased efficiency and accuracy of statuary reporting. The company also successfully filed the appropriate SEC documents to embark upon a sale process with accurate financial data.

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.