Audit challenge: First audit after a private equity acquisition

Challenge: First audit after a private equity acquisition

The first audit after an acquisition might be unfamiliar territory. Learn how a manufacturer navigated the process with Crowe.


The company initially struggled to prepare for its first financial statement audit after acquisition. Its finance leaders were unfamiliar with purchase accounting and valuation issues.


Company management received detailed orientation and training on acquisition-related accounting topics that affect financial reporting and the audit process.

Crowe audit team specialists assisted with training, tapping into their deep experience in serving both manufacturers and PEGs.

Audit challenge: First audit after a private equity acquisition

Challenge details

In the months following a private equity acquisition, countless tasks compete for management’s attention. The financial statement audit might not take priority, but it should: The audit process following a transaction is often new and unfamiliar to a company that has never been acquired before.

That’s the situation this manufacturer found itself in, following its acquisition by a PEG. Its CFO and management needed to adapt quickly – getting up to speed on purchase accounting issues – to avoid potential audit errors and missed deadlines.

Solution snapshot

The first audit after a private equity acquisition requires thorough preparation and orientation. An audit firm plays a central role here by coordinating tasks and communication and by educating stakeholders about how purchase accounting affects financial statements and the audit process.

The Crowe audit team stepped in to share its deep audit experience in both manufacturing and private equity. Crowe leaders took time to orient management and PEG counterparts on technical issues that would affect the audit, such as the valuation of profits interest and the seller note.

Audit expertise and specialization
Work with an audit team that has served numerous companies and private equity firms navigating the audit process. 


The outcome? A smooth and successful audit with no surprises. Extensive audit preparation and client education made the difference.

Our clients appreciate that Crowe senior audit leadership will jump in when needed to help educate clients or troubleshoot technical issues.”

– Adam Lawrence, Managing Partner, Food & Commodities 

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Beau Schwegman
Beau Schwegman
Partner, Audit & Assurance
Matt Redente
Matt Redente
Partner, Private Equity Audit Leader