KDK, a leading provider of pediatric dental services, acquired by Western Dental
Jim Emslie, Partner of Synergy Advisors, LLC, which served as KDK’s exclusive financial advisor, recognized the need for additional expertise and referred Hardesty, LLC to assist KDK in this process. Hardesty deployed CFO Partner, Scott Patterson, a dental industry financial management veteran with multiple sale transactions to his credit, to prepare the company for sale. He immediately elevated the integrity and usefulness of KDK’s financial reporting in anticipation of a sale transaction and managed most aspects of the due diligence and closing process.
A Partner with Hardesty’s National Healthcare Practice, Scott has over 25 years of management experience, primarily in healthcare services industries.
“We knew KDK had a unique and proven successful business model, but the accounting team and reporting systems were just not quite on par with the rest of the organization. Having Scott come on board as Interim CFO to square up the financial reporting system and manage many of the challenges associated with a sale transaction and diligence process, was critical in the success of the sale,” says Jim Emslie. Jim adds, “The buyer’s independent accounting firm that performed the Quality of Earnings review (“QOE”) commented Scott’s QOE diligence package and presentation was the best they had encountered in many years. Having such integrity in the numbers resulted in a much smoother diligence process.”
Dr. Jerry Lanier, KDK’s founder added, “Looking back, bringing in Scott as the interim CFO to elevate the accounting team and manage the sale process was the right alternative and great choice. Scott’s business, accounting, and transaction experience proved invaluable. At the end of the day, what Scott was able to bring to the table increased our valuation and greatly attributed to our ability to close the deal.”
During the engagement, Scott provided the following services:
- Conversion from cash to GAAP accrual financial reporting and timely monthly reporting
- Restated prior reported cash basis results to accrual basis reporting, and preparing 4-year historical monthly financials by profit center, including identification, monitoring, and comparing key performance indicators
- Prepared and managed QOE diligence package reviewed by independent accounting firm
- Guided, participated, and performed final review of comprehensive five-year financial forecasting model
- Presented company’s financial performance and projections at management presentations to potential buyers
- Managed the virtual data room and document updates (financial, corporate, legal, contracts, etc.)
- Collaborated with investment bankers, attorneys, buyers, and other advisors throughout the due diligence and closing process
- Post transaction close worked closely with buyer management team to ensure smooth transition of critical accounting and business activities
- Prepared calculation of final post transaction close purchase accounting adjustment
- Hired and training of accounting team members
About Hardesty, LLC
Hardesty, LLC is an executive services and consulting firm providing C-Suite executives such as CEO, COO, CFO, VP Finance or Controllers, and other management professionals to middle market companies. We offer on-demand financial and management professionals through a range of contracting methods including: interim management services, executive search services, special project services, and strategic & technical accounting consulting services.
The Hardesty team is comprised of both senior industry executives and experienced executive recruiters. We excel in delivering highly effective talent who are experienced in rapidly integrating into our clients’ operations. Our partners, principals, and professional staff generally includes CPAs and/or MBAs selected for their extensive experience as seated CFOs, VPs of Finance, and Controllers.
Hardesty has offices and affiliates in Orange County, Los Angeles, Northern California, Atlanta, New York, Miami, Philadelphia, Washington, D.C., Tampa, Toronto, Seattle, Phoenix, Dallas, Boston, and Portland.