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Our client, a prominent global manufacturer of industrial chemicals, planned a large-scale merger followed by two spin-off transactions. The merger required transferring and integrating consolidations processes, but the client’s outdated ERP system and heavy reliance on manual journal entries created significant complexity. With an extensive volume of entries to manage, the client needed a detailed “carve-out” process to properly align the spin-off entities before separation.
We were engaged to lead the carve-out effort and prepare the organization for the spin-offs. We began by aligning consolidations data and processes to match the future structure of the standalone companies. Our team developed tailored templates for internal control documentation, incorporating incremental review sign-offs and reconciliations to ensure accuracy and audit readiness.
We facilitated frequent quality review meetings with senior leadership and external auditors, presenting clear summaries of the carve-out splits and underlying methodologies. To prepare the internal accounting consolidations group for the transition, we provided step-by-step instructions, targeted training and communications planning.
Our work extended into the operational integration of the new companies. We oversaw the creation of new consolidation journal entries and processes within the client’s governance framework, coordinated closely with process owners and key stakeholders to align workflows, and partnered with the tax department to address related tax impacts. This hands-on approach ensured that both the carve-out and subsequent operational transitions were executed with precision and minimal disruption.
Our methodology and oversight resulted in the successful carve-out and alignment of consolidations data, which was accurately reflected in the client’s SEC filings for the spin-off companies. We also achieved a seamless integration of the heritage company’s consolidation processes into the new standalone entities—positioning them for stability and compliance from day one.