Advisor's Edge with Baker Tilly

The third episode of our Baker Tilly podcast series focuses on the benefits of outsourced accounting for PE firms and their portfolio companies. Our first two podcasts explored what it takes to prepare a company for acquisition. Now, we look at ongoing care to help keep that company's finances in great shape. Outsourced accounting helps to bridge the gap between the practices that a PE company expects from its portfolio companies, and that company's internal capabilities.

In the second episode of our podcast series, we will examine the importance of effective financial reporting to portfolio companies as they prepare for their PE transaction. This process complements the transaction readiness and due diligence phase, which identifies issues that must be addressed before a company can join the PE firm's portfolio. The financial reporting team concentrates on dealing with those issues by imposing best practices in financial reporting and ensuring that the candidate portfolio company is audit-ready. Listen in to find out what's involved in this process and how portfolio companies can work with a third-party professional to achieve success.

All kinds of companies come across a private equity firm's desk for potential acquisition. There is normally plenty of work to do before they are ready to change ownership and become a portfolio company. Financial planning and advisory services play a critical part at this stage, as does due diligence. Both of these processes ensure that the PE firm and the portfolio company prepare themselves properly for the relationship. Working with accounting and tax professionals at this stage enables both parties to build a robust platform for future prosperity.