International electronic payments gateway

Challenge

Our client is an established international electronic payments gateway business providing a card payments solution to merchants across a range of sectors, that had recently undergone a significant period of change due to new investment and changes in key personnel.

As part of an ambitious growth strategy, the business had recently completed a major acquisition. Recent developments in the business had led to some changes in personnel and some legacy information and internal processes were not deemed suitable by the management team.

The management team therefore needed to undertake an audit of the annual compliance needs for the UK parent company and its overseas subsidiaries and seek independent advice for the Board as they looked to update policies and procedures.

Solution

We worked with the management team to review the financial information at the time of the acquisition to assist in reconciling the accounting schedules with the financial statements. We also advised them of the tax consequences to the group of addressing some legacy balances.

We then led an international group audit of the consolidated results, coordinating with auditors overseas and visiting major parts of the business to complete this essential work.

Outcome

Intercompany positions were satisfactorily cleared. First period financial statements were prepared with an opening balance sheet that provided a clear picture of the position of the new group for the Board which ensured the management team could present to their investors with confidence.

We continue to work with the management team on the next phase of their growth trajectory, including advising on the group’s transfer pricing structure and the tax implications for management of the introduction of an incentive plan.