Venturing into Singapore presents significant challenges for private equity firms, especially for those unfamiliar with the local regulatory landscape. The unique regulatory environment in Singapore demands a deep understanding of local laws, compliance requirements, and market dynamics. For private equity firms unfamiliar with these intricacies, the process can be even more daunting.

Additionally, these firms face challenges with inefficient processes caused by system limitations and undefined processes, particularly during the integration of portfolio companies. Such inefficiencies impede the progress of core business units, leading to errors, delays, employee dissatisfaction, and other issues that can negatively affect the company’s financial health.

Private equity firms also struggle to generate timely, accurate, and audit-ready financial reports. The lack of comprehensive financial information can limit their ability to make informed decisions that are crucial to the success of the company.

In this case study, we explore how our comprehensive CFO support, audit support services, and harmonisation of portfolio companies have assisted a private equity firm based in Sweden (henceforth called the “Client”), in successfully navigating these challenges and achieving their expansion objectives.

 

Case Study – Private Equity Firm (“Client”) in Sweden

Background:
The Client is a private equity group listed in Sweden that expanded its presence to Singapore and actively pursued acquisitions. It successfully acquired two technology companies as part of its portfolio expansion strategy.

Our team of highly skilled financial experts worked closely with the Client, providing strategic guidance and assistance in crucial areas. This included a range of services such as CFO support, financial reporting, budgeting, forecasting, and audit support.

 

How we helped:
CFO Support Services – We provided comprehensive CFO support services to the Client and its diverse range of portfolio companies, helping them navigate the dynamic financial landscape. Through regular meetings and the utilisation of dashboards, we facilitated the Client in making informed financial decisions, strengthening their financial controls, and enhancing their reporting capabilities.

Budgeting and Forecasting - Leveraging our expertise in financial forecasting and budgeting, we assisted the Client in developing a robust budgeting and forecasting framework aligned with their parent company’s strategic goals and objectives. This framework enabled them to effectively navigate the financial landscape and make proactive decisions to achieve their business objectives.

Audit Support - Recognising the intricacies and the constantly evolving nature of compliance regulations, we offered comprehensive technical audit support to ensure our client were well-prepared for the audit. Working closely with the private equity firm's auditors, we fostered collaboration and streamlined audit procedures. Our valuable assistance played a pivotal role in the Client successfully completing their inaugural year audit, providing them with valuable insights into their financial performance and bolstering their confidence in meeting regulatory obligations. Additionally, we actively addressed the Client’s accounting and audit critical needs, leveraging our experience and insights to help these companies make well-informed decisions, optimise their financial performance, and position themselves for long-term growth and profitability.

Ongoing review of portfolio companies – We recognise that integrating a new portfolio company into an existing portfolio can present challenges and require significant time and effort. To streamline this process, we actively assisted the Client’s portfolio companies' in-house finance teams by providing guidance and training on reporting practices. Our goal was to align their reporting with established standards and ensure accuracy and consistency in their financial information.

 

With our strategic guidance and specialised services, the Client and its portfolio companies have successfully ventured into Singapore's challenging market. Our comprehensive support in CFO services, audit assistance, and harmonisation of reporting practices has enabled them to overcome regulatory hurdles, enhance financial management capabilities, and position themselves for long-term growth and profitability. Through our partnership, we continue to assist the Client in achieving their business objectives while ensuring a seamless integration process for their portfolio companies.

 

To find out more about RSM's Private Equity Practice, please contact our specialists:

Wenxue Tan
Partner & Industry Lead, Private Equity Practice   
T +65 6594 7887   
[email protected]

Fionn Shoo
Director & Deputy Industry Lead, Private Equity Practice
T +65 6594 7946
[email protected]