Carve-Outs / Divestitures

Separation under pressure: Supporting a complex divestiture and financial transformation

Client

Large, multi-billion-dollar global media and entertainment company

Industry

Media and Technology

  • Financial Statement Prep
  • Audit Readiness
  • Standalone Financials
  • ERP Budget Integration

The Challenge: Managing complexity under pressure

When a private equity firm acquired the media division of a large organization, the transaction required a rapid and seamless separation from the parent company’s systems, processes, and controls. With extensive reporting requirements and high expectations from both the buyer and seller, the client needed immediate, hands-on support from uniquely talented professionals who could deliver under pressure. The client sought a partner who could take initiative, anticipate needs, and ensure continuity during this pivotal transformation.

The divestiture presented several complex challenges:

  • Tight deadlines: Timely and accurate execution of month-end close, reporting, and transition activities was critical to meeting external and internal milestones.
  • Technical complexity: The team needed to ensure consistent GAAP compliance while managing new ERP system implementation challenges and reconciling historical data.
  • Audit readiness: The division faced its first year-end audit as a standalone entity, requiring full transparency and coordination with a Big 4 audit firm.
  • Operational continuity: As key functions were transitioned, financial reporting, forecasting, and controls needed to remain stable and reliable.

The Solution: Trusted financial excellence from pre- to post-transaction

Through Leadership Advisory and needs assessment, the client gained clarity, urgency, and alignment around their most critical priorities. While the organization had historically adopted a reactive approach, the implications raised during needs assessment discussions made the risks of delaying action feel tangible. As a result, the client shifted to a more proactive posture to address potential issues early to avoid costly rework, delays, or reporting inaccuracies. The process also helped the organization refine its focus, identify its key contributors, and ensure those individuals were positioned to operate at their highest and best use, enabling stronger execution across the transformation.

In support of the work after needs assessment, Siegfried professionals played a critical role in supporting both sides of the carve-out – from pre-transaction preparation through post-transaction stabilization. Acting as an extension of the client’s finance organization, our team took ownership of key financial reporting processes, implemented new systems, and established the foundation for sustainable operations.

Financial reporting:

  • Siegfried professionals managed core financial reporting deliverables, including monthly, quarterly, and year-end statements, ensuring accuracy, timeliness, and GAAP compliance. They provided technical accounting expertise to address complex transactions such as business combinations, debt modifications, and goodwill impairment. Their work ensured the reliability of financial disclosures that were essential to the success of the divestiture.

SAP ERP system implementation:

  • The Siegfried team led testing, issue resolution, and validation during the rollout of a new SAP S/4HANA ERP system. By proactively identifying and addressing issues during month-end close, they enabled a seamless go-live and established strong post-implementation controls. This effort positioned the new organization for greater efficiency and visibility across its financial operations.

External audit and GAAP compliance:

  • As the division prepared for its first standalone audit, Siegfried professionals coordinated with the external auditors, prepared disclosure checklists, and supported remeasurement accounting related to acquisitions. Their diligence ensured accurate asset valuations, working capital settlements, and goodwill adjustments: all critical for establishing credibility in post-divestiture reporting.

Standalone financial statement preparation:

  • The Siegfried team developed and reviewed standalone financial statements to meet debt-related and regulatory requirements, ensuring that they reflected the company’s true financial position after separation. They reviewed top-side adjusting entries and delivered clean, audit-ready financials that met both internal leadership and lender expectations.

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The Impact: A seamless separation and foundation for growth

By combining authentic chemistry with communication, Siegfried professionals helped the client navigate one of the most critical phases of its transformation. Their ability to operate independently under client direction, manage competing priorities, and deliver under pressure ensured the carve-out’s success.

Key outcomes included:

  • Timely and accurate reporting: Delivered critical financial statements under tight deadlines while maintaining full GAAP compliance.
  • Operational continuity: Established reliable budgeting, forecasting, and control processes to support ongoing financial operations post-transaction.
  • Successful ERP transition: Enabled a smooth SAP S/4HANA go-live and strengthened financial infrastructure for the new organization.
  • Audit readiness and credibility: Coordinated a successful first-year audit with a Big 4 firm, ensuring transparency and confidence among stakeholders.

Through the Siegfried team’s agility, accountability, and technical acumen, they provided the excellence and leadership needed to partner with the client through a complex divestiture, transforming uncertainty into clarity and establishing a foundation for long-term success.

What the client said

“The Siegfried team has been instrumental in our success here, serving as leaders and true contributors on our team. They were willing to put in whatever hours, necessary whether that was working late or working on the weekends. They were always flexible with continuously changing priorities and took a great deal of pride in their work, which was done efficiently and quickly. No challenge was too big or small – the Siegfried team was there to help us, each step of the way.”

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