A Chicago-based private equity firm has planned a public IPO for the Real Estate Investment Trust (REIT). The company owned and operated the largest wholly-owned industrial real estate portfolio in the United States. The company’s portfolio, which operates in 23 states across the country, had a total of more than 117 million square feet of storage and distribution centers.
Despite the size of the company, management found that they did not have the internal resources to carry out the IPO, so they turned to outside experts to help the company become like a major commercial publication publicly one of the largest. Exchanged such companies. In addition, the IFI had significant experience in financial reporting by private companies but needed assistance in meeting the reporting requirements of public companies.
Preparation of the first takeover bid
For the proper and effective implementation of the IPO, the company has employed financial reporting outsourcing and management consulting experts with technical knowledge of public tenders and experience in IPO real estate. IPO Due to strict deadlines and threatening reporting requirements, the IPO company hired RSM to help. RSM has been working closely with the company for several months to help meet the planned listing schedule and provide support in some key areas:
- Financial reporting project – preparation of the main elements of the first registration application, complex, time-consuming work requiring a series of inspections, tests, and team coordination, including the preparation of a discussion management analysis and component; coordinating the collection of pro forma information and the collection of financial information for the auditor’s consolation letter.
- Reorganization of Cash Foreclosures and Reporting – Creating a reliable foreclosure through the SEC registration process to meet registration deadlines. Developed and harmonized business and real estate policies and procedures.
- Consolidation of financial information – recommended options for combining the financial information of four separate companies, each of which has previously been calculated and maintained independently.
- Drafts of public archive models – prepared the company’s quarterly and annual reports, including a model for merging four separate units.
- Evaluate systems and processes – Evaluate existing financial information systems and identify key business needs of the public enterprise.
Problems and challenges
For a company to become public, the RSM team, which worked with the company’s people, had to assess the company’s readiness to become public and succeed as a limited company. They aim to identify potential gaps – in terms of reporting, oversight, operations, and event management experience – about the specific requirements of public and public presence.
The team developed a work plan that prioritized things to do:
Problems with financial reporting forced the team to conduct a gap analysis to determine the availability of financial and accounting information. This work included assessing the quality of reporting and documentation; analyze existing accounting principles; and ensure compliance with generally accepted U.S. accounting principles and SEC rules. The team then developed a plan to meet information needs and helped implement procedures that facilitate the company’s ongoing reporting.
Evaluations of systems and operational financial processes provided an overview of future reporting and planning processes, as well as the current system environment, allowing the team to present a plan for better control of SEC reporting, security, and data availability.
The RSM team established working relationships with external experts hired by other clients to resolve issues promptly and provided a concerted effort between the relevant experts to be consistent with the overall objective of the client’s IPO archive. In the long run, the team has also identified opportunities to continually improve different functional areas throughout the company to achieve efficiency and effectiveness as a public entity.
Finally, the company received a comprehensive report; assistance in the preparation of certain financial statements, financial statements, schedules, and positions; and an action plan to publish the company. “RSM took us to the finish line,” said the company’s vice president and chief accountant, “that’s exactly what we needed.”