Helping a PE-owned Healthcare Company Throughout the IPO Process

October 2022

A $1.5 billion healthcare company that manages over 150 independent living facilities nationally wanted to go public through an initial public offering. The PE-backed company had completed five major acquisitions over the last three years, which led to issues in IPO readiness.
 

Client Situation & Challenge

The company had several critical gaps it needed to address before filing to go public. It had no common chart of accounts, standard financial reporting structure or plan for upgrading its audits to public company standards. It also struggled with a long close and reporting cycle and faced operational challenges in payroll and accounts payable. In addition, the company lacked finance staff with previous public company experience.
 

BDO Solution

BDO performed a holistic IPO readiness assessment that uncovered the gaps related to processes, capabilities and reporting. BDO developed and executed a roadmap to navigate these challenges and prepare the company to go public. To ensure timely completion of all workstreams, BDO stood up an IPO Project Management Office and supplemented the company’s internal resources. Support included:
  • Project management across all IPO readiness initiatives
  • Interim financial management support for roles including chief accounting officer, chief financial officer, controller and other finance executive roles
  • Interim support for SEC financial reporting


Client Benefit & Result

As a result of BDO’s assessment and support, the client was able to identify and address all critical gaps necessary to IPO with no impact to ongoing operations. Outputs included:
  • Chart of accounts alignment and consolidation
  • Systems implementation for procurement and payroll
  • Internal controls and material weakness remediation
  • Purchase accounting valuations
  • Technical accounting review and implementation
The organization is now well-positioned to pursue an IPO and thrive as a public company when market conditions are favorable.