Defensible Positions. Audit-Ready. Operationally Sustainable.
GAAP compliance doesn't drive value creation—but poorly documented accounting positions create risk at exit. Kadmus provides financial accounting advisory services to PE-backed companies: we establish defensible positions, document them clearly, and operationalize them in your systems so Finance can move forward with confidence.
We don't just write memos. Positions are reflected in your chart of accounts, configured in your ERP, and understood by your team—audit-ready and operationally sustainable.
Opening balance sheet, purchase price allocation support, acquisition-date fair value, technical memos for auditor review
Contract analysis, performance obligation identification, SSP determination, variable consideration, system configuration
Lease inventory, classification, measurement, disclosure, ongoing accounting
Grant date fair value, expense recognition, modification accounting
Primary beneficiary analysis, consolidation mechanics
Instrument analysis, embedded features, bifurcation
Hedge documentation, effectiveness testing, designation
Emergence accounting for restructured entities
Cash-to-accrual, IFRS-to-GAAP, statutory-to-GAAP
Every acquisition triggers ASC 805: the deal consideration must be allocated to the assets acquired and liabilities assumed at fair value, intangibles identified and valued, and the residual recorded as goodwill. For a first-time sponsor-backed company, the purchase price allocation and opening balance sheet are usually the hardest parts of the year-one audit.
We manage the process end to end: building the opening balance sheet, preparing the PPA schedule, coordinating with valuation specialists on intangibles and fair value measurements, drafting the technical memo, and supporting the position through auditor review. The same discipline extends to carve-outs—standalone financial statements, cost allocations, and the accounting policies a newly independent entity needs from day one.
We don't just write memos. We ensure conclusions are reflected in your chart of accounts, configured in your ERP, and understood by your team. Positions are audit-ready and operationally sustainable.
Technical accounting is never generic: ASC 606 looks different for SaaS subscriptions than for field service contracts or healthcare reimbursement. See the industries we serve for how our work maps to your sector.
Business combinations (ASC 805), revenue recognition (ASC 606), leases (ASC 842), stock-based compensation (ASC 718), variable interest entities and consolidation, debt vs. equity classification, derivatives and hedging, fresh-start reporting, and GAAP conversions including cash-to-accrual, IFRS-to-GAAP, and statutory-to-GAAP.
We don’t just write memos. Conclusions are reflected in your chart of accounts, configured in your ERP, and understood by your team—so positions are audit-ready and operationally sustainable, not just documented.
An acquisition triggers ASC 805 requirements: an opening balance sheet, purchase price allocation, and acquisition-date fair value measurements. Getting these right—and documenting them in technical memos ready for auditor review—prevents audit friction and protects credibility at exit.
Yes. ASC 606 work spans contract analysis, performance obligation identification, standalone selling price determination, and variable consideration—and we carry the conclusions through to system configuration so the accounting runs in your ERP, not in spreadsheets.
A purchase price allocation assigns the total consideration paid in an acquisition to the assets acquired and liabilities assumed, measured at acquisition-date fair value. That means identifying and valuing intangibles—customer relationships, trade names, developed technology, non-competes—with the remainder recorded as goodwill. ASC 805 requires a PPA for every business combination, and it is one of the most heavily scrutinized areas in a first-year audit.
Yes. For carve-out acquisitions and divestitures we help prepare carve-out financial statements, allocate shared and corporate costs, establish standalone accounting policies, and stand up the accounting infrastructure the new entity needs to operate independently from the seller.
Every portfolio company is different. Let's discuss your specific challenges.
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