Insights

Post-Close Support and OCFO Stabilization for a BioPharma Evidence Provider

OCFO assessment in healthcare

Use Case

A private equity-owned syndicated biopharma registry and data provider engaged CrossCountry Consulting to deliver a comprehensive assessment of their finance and accounting function. The company had been recently recapitalized and needed assistance with:

  • Post-close accounting requirements.
  • Calculation of net working capital adjustments.
  • A 13-week cash flow forecasting model.
  • An ASC 606 revenue recognition impact analysis assessment.
  • Drafting audited consolidated financial statements and footnotes.
  • Documenting the accounting treatment of stock-based compensation awards issued as part of the transaction.

CrossCountry Consulting also made itself available for on-call technical accounting services.

Our Approach

Led by a team of hands-on experts, CrossCountry Consulting initiated a health check of the entire finance and accounting function. This entailed close collaboration with the CFO and key process owners to implement a series of robust testing procedures.

With a detailed analysis of the transaction nuances, the team was able to prevent net working capital leakage, determine opening and closing balance sheets, and draw up a roadmap for meaningful and enduring operational enhancements.

Focusing on both the immediate complexities of the transaction and the long-term scalability of the company’s goals, our consultants delivered value throughout the organization.

Our Impact

Increased financial function ROI: Created comprehensive OCFO roadmap to drive sustainable operational improvements that support the longer-term growth and scalability goals of the company’s finance & accounting functions.

  • Recommended the prioritization of 21 strategic initiatives across 7 key processes, organizational structure changes, and IT investment requirements to achieve a future state delivery model.

Improved forecasting: Built a 13-week cash flow forecast amid the COVID-19 crisis including a variation analysis bridge to the company’s budget, automation of the capital structure & cash receipts/disbursements, and various analyses (e.g., actual-to-forecast; trended DSO/DPO).

Provided comprehensive accounting support: (i) Conducted a detailed NWC true-up analysis, which identified errors in deferred revenue and unbilled receivables and purchase price adjustment, (ii) prepared technical accounting memos, (iii) ensured compliance with adoption and implementation of ASC606 and prepared audit-ready documentation, and (iv) ensured the audited consolidated financial statements were issued in accordance with debt covenants.

 

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