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Interim CFO Support and Accounting Stabilization for Newly Acquired Distributor
About
A newly acquired distribution company onboarded a new CFO following purchase by a private equity firm. The sponsor had concerns regarding the experience and depth of the existing accounting and finance team. Taylor White was engaged to assess risks, strengthen financial controls, support the new CFO, and prepare the business for audit readiness and future growth.
The company’s accounting team lacked sufficient technical depth, documentation standards, and system proficiency. Initial reviews revealed unsupported journal entries, inconsistent reconciliations, limited use of technology, and gaps in staff capability, creating significant risk in reporting accuracy and audit readiness.
We deployed an experienced Director and Senior Consultant to evaluate talent, review the balance sheet, identify high-risk areas, establish new reconciliation formats, train staff, and provide recommendations to strengthen the team and support the company’s long-term acquisition strategy.
Problem
Inexperienced Team and High-Risk Financial Reporting Environment
The private equity sponsor expressed concerns over the accounting team’s technical capabilities and depth. The new CFO inherited inconsistent reconciliations, unsupported journal entries, outdated processes, and limited system knowledge, creating material financial and operational risk.
Goal
Assess Team Capability and Establish Audit-Ready Balance Sheet Controls
The objective was to evaluate accounting staff, identify high-risk areas, strengthen balance sheet integrity, and create sustainable processes that would support accurate reporting, audit readiness, and future acquisition activity.
Solution
Targeted Balance Sheet Review, Risk Assessment, and Staff Training
Taylor White deployed a short-term project team to complete a targeted balance sheet review, interview staff, assess system usage, identify risk areas, establish new reconciliation standards, train staff, and recommend long-term team enhancements aligned with sponsor expectations.
Structured Interim CFO Support and Stabilization
We led a focused multi-week program to assess risk, remediate balance sheet issues, strengthen reconciliation processes, and train accounting staff to meet audit-ready standards under new ownership.
Phase 1
Recommended a structured balance sheet review led by an experienced Director and Senior Consultant
Interviewed accounting staff, including the Controller, to assess skillset and system proficiency
Conducted risk assessment to identify high-priority areas in an eight-week project
Reviewed existing account reconciliations for targeted accounts
Identified unsupported journal entries and documentation gaps
Identified insufficient system training and overuse of manual Excel processes
Phase 2
Stabilization and Training
Expanded the project to cover all balance sheet accounts
Developed new standardized reconciliation formats
Trained staff to transition reconciliation ownership and ensure proper documentation
New formats were adopted for the annual audit and contributed to reduced audit fees
Prepared out-of-period adjustments in a Quality of Earnings format for sponsor review
Phase 3
Talent Evaluation and Future-State Recommendations
Evaluated accounting and finance team capabilities to identify gaps
Recommended hiring additional permanent staff required to support future acquisitions
Advised the CFO and private equity firm on organizational structure to support ongoing growth
Result
Audit-Ready Financials and a Strengthened Finance Function
The company achieved audit-ready balance sheet controls, improved documentation standards, and a more capable accounting team. Reconciliation formats created by Taylor White were used in the annual audit and contributed to reduced audit fees.
With stabilization complete, enhanced training, and recommended talent additions, the finance function is now positioned to support the company’s acquisition strategy and meet the expectations of private equity ownership.
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