Value Acceleration Solutions for Private Equity Sponsors

Transform Your Financial Reporting
We know that better-informed decision makers make better decisions. One of the most important tools to accelerate value creation – and provide better information to decision makers – is timely and reliable financial reporting.
Capstone’s Financial Advisory Services (FAS) professionals have developed a solution for middle market companies to accelerate the period end close to give management critical data sooner so they can take decisive action.
For sponsor-owned companies, we work alongside the management team through this transformation to align, build, adjust, and adapt new business processes to deliver a sustainable five-day close and allow management and the advisory board to “hindsight” the past months’ performance and fine-tune plans for the next month.
The desired outcome is an improved ability to plan and exceed future monthly quarterly and annual objectives and key results, and to increase exit valuations.
Even if the five-day goal isn’t quite achievable for a business immediately, our professionals are able to help most companies quickly get to a sustainable, shorter close that is typically between five and 10 days.
Support Better Decision Making
Closing the books quickly and accurately is not just an accounting practice. It is a vital business activity that supports operational and strategic decision making.
Financial Statement Accuracy – Ensure that all financial activities are recorded timely and accurately, providing a true picture of financial results.
Performance Analysis – Allow sufficient time to assess financial performance regularly, identify trends, manage cash flow, and make informed, timely decisions
Budget Monitoring – Enable comparison between actual and budgeted financial results, which is vital for maintaining financial discipline and planning.
Stakeholder Confidence – Enhance credibility with stakeholders, including investors, lenders, and partners.
Strategic Planning – Provide data essential for forecasting, strategic planning, and resource allocation.
Course Corrections With More Timely Reporting
Case Study: Accounting Systems Integration of New Portfolio Companies
The Company is a PE-owned holding company focused primarily on the acquisition of businesses that specialize in designing, building, installing, and servicing overhead crane systems.
The Company’s private equity owner hired Capstone’s FAS team to integrate and improve accounting systems and financial reporting processes on new acquisitions.
They were introduced to the FAS team during the acquisition a business that had engaged FAS for sell-side transaction advisory support.
Over the course of more than 15 engagements, Capstone FAS acted as consolidating entity for the entire organization for financial reporting, allowing the acquired businesses to be quickly and efficiently integrated into the broader operation.
Case Study: Financial and Accounting Process Improvement Project for Bolt-On Acquisition
The private equity client was in process of acquiring a bolt-on company to enhance its existing platform investment. The acquisition was expected to be profitable, but the diligence process had identified several potential issues with the target company’s management and accounting policies, procedures, and capabilities.
They needed a team to facilitate the transition to private equity ownership.
Capstone’s FAS team was on-site within one week of closing and assumed the roles of transition management and integration advisor. Over the course of approximately 5 months, Capstone improved or implemented new procedures in multiple areas throughout the organization including, including accounting improvements and staff training, month-close procedures, ERP improvements, general ledger account remapping, and policy improvements.
At the end of the engagement, full accounting responsibility was handed back to the original subsidiary staff.
Case Study: Transition Management and Accounting Staff Training for Multiple Acquisitions
The PE client acquired a group of four bolt-on additions to a recently acquired platform. The new entities kept their own books and records and operated under their own accounting systems. All acquisitions needed to be converted to the parent’s policies, procedures, and reporting and the entities all needed to properly record the change in ownership in their financial records. Internal staff was knowledgeable but did not have the experience to perform the specialized accounting needed.
FAS was able to provide highly experienced personnel to implement the transition to full accrual accounting, perform the one-time special accounting needed, and train the existing staff on new policies and procedures.
Over the course five months, FAS implemented new procedures in multiple areas throughout the subsidiaries including accounting, operating policies, software implementations, and merger integration-related activities.
When the engagement concluded, full accounting responsibility was handed back to the original subsidiary staff, now operating at a higher level and comfortable working within the private-equity framework.
Related Insights and Updates
Value Acceleration Specialists

Brian Davies
Managing Partner Financial Advisory Services
Jim Calandra
Managing Director Head of Financial Advisory Services
Harvey Mason
Managing Director Financial Advisory Services
Brian Pitera
Managing Director Financial Advisory Services
Alex Alekseev
Director Financial Advisory Services
Adam Brissette
Director Financial Advisory Services
Brian Phillips
Director Financial Advisory Services
Adrian Urgena
Director Financial Advisory ServicesAre you ready to learn more about how we can help accelerate the value of your company?