Case Studies

From Financial Fraud to Reliable Reporting for a $90M+ PE-Backed Trade Services Company

From Financial Fraud to Reliable Reporting for a $90M+ PE-Backed Trade Services Company

Situation

A $90M+ B2B trade services company backed by private equity uncovered significant accounting fraud that exposed broader weaknesses throughout its finance organization. Despite bringing in new financial leadership and temporary accounting support, critical accounts remained unreconciled, financial reporting lacked reliability, and the month-end close was taking two to three months.

The PE sponsor engaged MMG to stabilize the accounting function, strengthen financial controls, and improve the quality and timeliness of reporting for management, lenders, and investors.

Solutions
1

Rebuilt Critical Financial Controls

MMG addressed longstanding reconciliation issues across the company's highest-risk balance sheet accounts. The team reconciled four bank accounts, cleaned up 15 balance sheet accounts, and reviewed and reconciled statements for 128 vendors.
MMG also established standardized reconciliation processes and workflows to help the internal finance team maintain accurate accounts going forward.
2

Strengthened Accounting Policies and Month-End Close

MMG developed a formal capitalization policy and reviewed more than 200 fixed assets covering 36 months of activity. The team also reviewed 18 leases for completeness, classification, and amortization, corrected out-of-period transactions, and implemented standardized month-end close checklists and reconciliation workflows.
Together, these improvements helped reduce the company's month-end close by approximately 50%, from two to three months to approximately 30 days. MMG continued working with the finance team toward a 15-day close timeline as staffing turnover affected progress.
3

Improved Executive, Lender, and Investor Reporting

Working alongside the CFO, MMG redesigned the company's reporting package using Velixo to create dynamic, consolidated reporting across more than 13 operating locations.
The new reporting structure gave management greater visibility into financial performance while improving the efficiency and reliability of reporting provided to lenders and the private equity sponsor.
Results

Over an initial six-month engagement, MMG helped stabilize a finance organization dealing with the aftermath of accounting fraud and establish a stronger foundation for reliable financial management.

The company reduced its close timeline by approximately 50%, resolved significant balance sheet and reconciliation issues, strengthened accounting policies, and improved consolidated reporting across its operations.

Following the initial remediation work, MMG’s engagement was extended to support continued finance and KPI optimization, with FP&A support remaining in place while the company transitions responsibilities to its internal team.

50%

Month-end close reduced  by 50% to approximately 30 days

128

Vendor statements reviewed and reconciled

200+

Fixed assets activity reviewed

Consulting ServicesFractional AccountingInterim CFO / Controller / FP&AB2B ServicesConstruction and Industrial ServicesManufacturing & Distribution
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