Financial reporting for windfarm subsidiary preparing for sale
Financial reporting for windfarm subsidiary preparing for sale
| Industry | Renewables |
| Services provided | Management advisory services, financial and KPI reporting assistance |
Key learnings
- Pre-transaction support: Early financial clarity is essential for successful sale preparation
- Value of financial reporting: Transparent and accurate reporting builds trust and reduces risk in merger and acquisition (M&A) scenarios.
BDO was engaged by a TopCo specialising in renewable windfarms to assess and assist its subsidiary with accounting and financial reporting. TopCo invested significantly across multiple projects and was concerned about the lack of visibility into historical financial performance and the tracking of funding allocations. These issues posed a risk to the subsidiary’s readiness for a potential sale process.
BDO provided management advisory services, including:
- Financial and key performance indicator (KPI) reporting assistance
- Cashflow review
- Historical financial reconstruction
- Pre-transaction support.
The engagement focused on resolving legacy accounting issues and enhancing reporting transparency across five entities within the consolidated group.
Strategy and restructuring path
BDO undertook a detailed analysis of the subsidiary’s accounting records and implemented the following:
- Recreated the general ledger to financial statement process, enabling full visibility from individual transactions to account balances
- Developed income statements, balance sheets, and cash flow statements for each entity, along with a consolidated view for TopCo
- Created a separate workstream to map the sources and uses of TopCo funding across individual projects
- Delivered a detailed timeline of funding and associated expenses by project, improving TopCo’s understanding of capital deployment.
Outcome
BDO’s work provided TopCo with a clear and accurate financial reporting framework, enhanced visibility into historical performance and funding flows, a consolidated financial view to support due diligence proceedings for the potential sale, and confidence in the subsidiary’s readiness for transaction processes.