When a publicly traded water utility company faced the daunting task of restating its financial statements with the SEC, it turned to CSuite’s Tony Rodriquez for expert guidance. With his extensive background in big-four accounting and CFO roles in publicly traded companies, Rodriquez provided the crucial leadership needed to navigate the complexities of SEC reporting and external audits. His expertise not only resolved the immediate restatement issues but also led to a successful sale of the company.
Challenges
Navigating the SEC restatement process posed several significant challenges for the water utility company:
- Extent of Restatement: Identifying the scope of the restatement, including the number of erroneous accounts, quantifying the errors, and determining the periods to be restated.
- Re-Auditing and Filing: Re-auditing financial statements and filing corrected reports.
- Leadership Change: Addressing the resignation of the CFO during the restatement process.
- New Audit Firm: Collaborating with an external audit firm hired just before the restatement request.
Solutions
Tony Rodriquez and his team tackled these challenges effectively, ensuring a smooth process with the SEC:
- Situation Assessment: Rodriquez quickly evaluated the situation and developed a comprehensive plan for addressing the restatement.
- Correction and Re-Filing: His team corrected past financial statements, facilitated the audit of restated periods, and refiled the corrected SEC reports.
- Leadership and Coordination: Despite the CFO’s resignation, Rodriquez led the process, coordinating with the internal accounting team, auditors, the SEC, and a public relations firm.
- Team Collaboration: Rodriquez fostered a strong working relationship with the new audit firm, ensuring effective collaboration throughout the engagement.
Outcome
Rodriquez’s expertise not only resolved the restatement issues but also earned the CEO’s confidence. Following the successful restatement, Rodriquez and his team were retained to assist in the sale of the company to a private equity firm. The all-cash deal, valued at approximately $275 million, provided a 56% premium for shareholders and a 71% premium over the average closing price. The transaction, with a total enterprise value of approximately $427 million, highlighted the successful turnaround and strategic execution achieved by Rodriquez and his team.