Virtas Partners has developed enablement tools to segregate a target business, division, product line, customer base, or other component being packaged for sale from consolidated results, to track and record carve-out reporting and audit adjustments, prepare bridge reconciliations, and prepare summary financial statement caption information from detailed ledger balances on a pre and post carve out adjustment basis.
Client Need
A corporate parent preparing to divest a business component needed to produce stand‑alone, audit‑ready carve‑out financial information for buyer diligence. The company operated on fully consolidated systems with no separate books for the carve‑out entity. Extracting the target’s financials required:
- Segregating revenue, expenses, assets, liabilities, and cash flows
- Recalculating balances on a stand‑alone basis
- Allocating shared services and corporate overhead
- Preparing audit‑ready reconciliations and bridge schedules
The parent lacked the tools and capacity to perform this work efficiently under a tight transaction timeline.
Tailored Solutions
- Virtas deployed a combined machine learning, automation, and technical accounting approach to accelerate carve‑out preparation and ensure defensibility.
- AI‑Enabled Data Ingestion & Harmonization
- Automated Segregation & Stand‑Alone Ledger Reconstruction
- Automated classification of revenue, direct costs, SG&A, and allocations
- Financial Statement Preparation & Audit‑Ready Support
- Recommended specific actions to execute for near and intermediate term cost savings and process improvement
Value to client
- Accelerated production of stand‑alone carve‑out financials
- Reduced manual effort through automated segregation and recalculation
- Improved accuracy and defensibility with ML‑enabled logic and expert oversight
- Audit‑ready transparency via bridges, reconciliations, and adjustment logs
- Repeatable framework for future divestitures and portfolio transactions
Capabilities
- Data harmonization and cleansing
- Data Analysis
- Separation Planning
- Separation PMO and Execution Support
- Sell side QofE and Data Book Preparation
- Technical Accounting
- SEC and GAAP financial reporting experience
- Audit support