To further diversify its vast real estate portfolio, this CTS Impact client expanded into a new segment; hotels, via acquisition of 3 major portfolios within an 8-month period.  With acquired hotel assets of over $2.5 billion, this client needed specific hotel accounting experience to manage this back office integration and standardization.
As Project Manager, CTS Impact provided hands-on hotel and hospitality industry expertise to manage the acquisition integration onto its corporate platform.  In addition to leveraging economies of scale, CTS Impact led the efforts to develop new business processes, along with new reporting tools and standard operating procedures.  Deploying CTS Impact staff with hands-on financial systems experience, the legacy Timberline financial system was seamlessly converted to JD Edwards.
Throughout the transition, until the client was able to hire on permanent staff, CTS Impact provided interim accounting and financial reporting staff to support these new operations.

Other CTS Impact Solutions:

• Financial Reporting and Systems
  • Purchase accounting and reconciliation
  • SEC reporting
  • Design new reporting tools
  • Implement Content Management System (iManage)
• Tax Compliance
  • Sales & use tax dispute investigation and resolution
  • Interim staffing-Federal, state & local income tax assistance
• Asset Management and Joint Ventures
  • Develop standard processes to monitor investments
  • Partner and lender reporting
  • Litigation support
• Internal Audit – SOS 404 Compliance
  • Risk assessment
  • Develop standard tools/templates
  • Document key controls
  • Perform testing
  • Remediation planning
  • Status reporting and Audit Committee updates

Background:
In the midst of unprecedented company growth, this global technology and social networking company’s reporting needs expanded in both complexity and volume. With multi-national operations in over 40 countries worldwide, a standardized and automated reporting tool was mission-critical to produce GAAP-basis consolidated financial statements.

Financial data needed to be mapped from many different financial systems, including multi-currency transactions in 35 different local currencies. Joint venture and minority interest ownership of certain entities were also key issues for the consolidation of financial results.

In anticipation of its planned initial public offering, Groupon accounting staff had limited SEC expertise on staff. Also, the financial and systems controls needed to be reviewed and documented to analyze any potential gaps.

CTS Impact Solution:

Financial Systems Design and Implementation

• Cloud-based financial reporting tool (Host Analytics)–Rapid design and deployment
• Chart of accounts design
• Integration with cloud-based general ledger system (NetSuite)

IPO readiness

• S-1 registration statement preparation support and disclosures
• Interim staffing–financial reporting and consolidations

Corporate Governance and Compliance

• Risk assessment of internal control environment
• Documentation of key controls and processes (Financial and IT)
• Analysis of potential gaps
• Remediation planning

Background: This publicly-held international pharmaceutical company was experiencing very rapid growth through multiple significant acquisitions. Each acquisition maintained their accounting records on different financial system platforms, so the client needed to migrate these disparate systems to a standard platform (SAP).
Also, prior to the roll-out of a new financial reporting tool (Adaptive Insights), the CTS Impact team maintained a parallel tool to perform the consolidation process, as well as the report validation process throughout the system implementation.

CTS Impact Solution:

CTS Impact needed to provide significant hands-on experience to assist this client in several ways simultaneously:

• Acquisition integration (3 major acquisitions within 1 year)
  • Account mapping to new chart of accounts
  • Reconciliation and analysis
  • System conversion from Great Plains Dynamics to SAP
    • Assist with process design
    • Testing
  • Document standard operating procedures (SOPs)
• Interim accounting activities
  • Backfill support for various accounting and financial reporting roles while client conducted hiring process for permanent hires
    • Monthly/quarterly/year-end close activities
    • Consolidations
    • Inventory accounting
  • Cross-training and transition to new permanent staff

Consistent with CTS Impact hands-on approach, while performing these roles, CTS Impact implemented process improvements to streamline the month-end close process.  In addition, CTS Impact documented standard operating procedures (at the desktop level) to provide cross-training for new hires.

Background: In order to expand into new lines of business, this CTS Impact client pursued several acquisition opportunities across the U.S. Due to the entrepreneurial nature of these targeted operations, due diligence was necessary to determine an appropriate valuation, as well as to ascertain corporate fit and integration readiness.

CTS Impact Solution: In support of 4 different acquisitions, CTS Impact performed due diligence services in a compressed timeframe using the CTS Acquisition Toolkit, and by leveraging highly-experienced CTS Impact financial analysis staff who possessed strong first-hand operations and finance experience in the retail industry to perform the following:

• Conduct site visits to observe operations
• Interview key management
• Testing
• Review significant contracts and agreements
• Analyze historical financial data
• Perform pro forma analysis
• Review existing accounting procedures and controls
• Document systems in use for integration planning

Background: With the announcement of its sale to a large, Europe-based public utility company, this CTS Impact client needed enhanced reporting and analysis to support its new ownership. Also, re-engineering of business processes was required to align with its new corporate parent standards.

CTS Impact Solution:

• Financial reporting & analysis
  • IFRS financial reporting (previously on GAAP basis)
  • Develop annual budget
  • Develop methodology
  • Cash flow forecasting
  • Tax support (1099 reporting)
• Business processes and controls
  • Re-design purchasing and accounts payable processes (EDI, procurement card, T&E)
  • Document accounting policies and operating procedures
  • Internal controls review

Background: With the merger of 3 operating companies located across the U.S., this CTS Impact client needed to design and develop a standard back-office platform — business processes, policies & procedures, and systems, to support its integrated operations.  In addition, the back-office was being centralized to a new headquarters location

CTS Impact Solution: With a blend of hands-on experience with financial systems and processes, the CTS Impact team managed the following:

• Financial systems conversion (Great Plains Dynamics)
• Develop financial reporting and analysis tools
• Develop and document standard business processes and operating procedures
• Ramp-up staffing until permanent hires in place and cross-trained

Background: Based on the success of its products, this CTS Impact client explored various strategic transactions, including a potential sale.  As a part of these efforts, the client needed to understand and analyze the financial impact of these potential transactions, in order to make the best decision for the organization.

CTS Impact Solution:

• Prepare pro forma financial information for potential sale
• Prepare budget updates and cash flow forecasting
  • Perform operational analysis
  • Market analysis
  • Competitive analysis of comparable businesses
• Establish electronic data room
• Draft Offering Memorandum
• Coordinate responses to information requests from third parties