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A Vertically-Integrated Leader in Cannabis
Supporting Hypergrowth and Vertical Integration in a Dynamic Industry
Introduction
Our client had a specific goal in mind–to become an industry-leading, vertically-integrated powerhouse in the dynamic cannabis industry. Leadership determined that a series of acquisitions and an ERP system implementation were the best ways to drive rapid growth.
However, with a compact in-house accounting team and unexpected talent turnover early in the process, the client sought Embark's help to fill key skill sets and knowledge gaps. While the engagement initially focused on back-office financial reporting team support and continuity in critical financial leadership roles, it quickly evolved to include vital M&A guidance and post-acquisition integration.
Our Solutions
Embark's M&A Activity Advisory, ERP Integration, and Financial Reporting & Advisory services provided the client with the comprehensive support it needed to hit every goal—and then some.
Index
The “Big Wins”
1. Embark's expertise enabled a seamless ERP transition, significantly improving operational efficiency.
2. Throughout frequent M&A activity, Embark's guidance fortified reporting operations, ensuring uninterrupted business growth.
Client challenges & objectives
Our client began actively pursuing its vertical integration strategy once new state regulations made public company ownership of cannabis operations possible. However, with limited bandwidth in reporting and finance functions, unexpected personnel changes, and potential acquisitions not adhering to GAAP standards, the client recognized the need for professional guidance across several critical areas to realize its growth strategy.
The company engaged Embark to bolster its financial reporting operations and address essential needs and objectives concerning its multiple acquisitions.
- Provide additional bandwidth and in-depth knowledge on day-to-day financial reporting and advisory needs
- Streamline its reporting function
- Fill knowledge and skill gaps while looking for a permanent replacement in a key financial leadership role
- Guide conversion from Quickbooks to a robust ERP system
- Review and prepare SEC filings
- Help acquired companies convert from cash basis to accrual
- Perform financial due diligence on potential acquisition targets
- Lead systems integration between the client and acquired companies
- Identify ways to help acquired entities align with the overarching corporate vision and strategy
How Embark helped
Embark was able to successfully address each of management’s needs and objectives, all within a short timeframe by:
- Successfully leading the conversion from Quickbooks to the Sage X3 ERP system
- Preparing and reviewing the company’s SEC filings
- Converting acquired companies to GAAP-compliant accrual-basis reporting
- Preparing consolidated financials of potential acquisitions for management’s review
- Spearheading system integrations between the client and its newly-acquired companies
- Normalizing the company’s month-end close schedule and process
- Coordinating quarterly reviews and annual audit with the auditors
- Acting as the complex transaction analysis team, preparing and reviewing technical memos
- Interviewing, onboarding, and training new reporting and finance employees
- Providing continuity for the open financial leadership role as well as back-office financial reporting needs across the client and its acquisitions
- Solidifying financial reporting processes and practices as leadership builds out its in-house accounting team
Results: The client is positioned for lasting success
With a strong foundation established through its collaboration with Embark, our client is in a prime position to grow into a vertically-integrated force in this quickly-evolving industry. It continues to leverage Embark's experience as it pursues its expansion strategy, demonstrating Embark's value as an essential partner for businesses setting their sights on ambitious objectives.
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