Accuracy assists one of the largest sporting goods brands in the world in implementing a large scale restructuring programme.
Context
Our client, a sporting goods company headquartered in Germany, launched a €150m restructuring programme in light of declining profitability, with the programme including more than 250 individual measures. Having never faced a restructuring programme of this size, the client needed in-depth accounting knowledge and financial advice for the process.
How we helped
Our work consisted of several work streams including (i) IFRS advisory, where we prepared argumentation and documentation of restructuring measures for the auditor, (ii) the valuation of a portfolio of trademarks and (iii) the development of a tool to track the overall progress of the restructuring programme.
In addition, as the reporting formats of the client and its shareholder were not fully aligned, we supported communication between the two parties and provided assistance in the preparation of certain performance reports. Ultimately, we ended up generating several performance reports for the company’s shareholder.
Outcome
Apart from dealing with vast amounts of information related to the restructuring programme, effectively facilitating communication between our client and its shareholder was important. Since its takeover, our client had faced increasing reporting requirements, and as an independent advisor we were able to provide guidance on how to standardise the reporting process and make it more efficient.
As a result of our work, our client was able to classify the entire amount of €150m as restructuring charges according to IFRS. Further, our performance reports helped the shareholder to improve its understanding of our client’s performance. Additionally, the shareholder was able to gain valuable insights into the internal reporting processes at the company level.
