Recovery Audit Firm, GALOSI, Facilitates the Merger and Acquisition Process

Mergers and acquisitions are occurring more frequently across many industries such as media, banking, health care and more. As recent news has shown, acquisitions and mergers can be painful, even disastrous if the process is not streamlined and handled thoroughly. Yet there is hope; companies can survive a merger or acquisition with ease if they plan ahead and partner with an independent, experienced recovery audit firm. GALOSI, located in Dallas, TX and Mexico City, is a recovery auditing firm that can significantly ease the transition and internal restructuring involved with a merger or acquisition. A powerhouse of knowledge and expertise in profit recovery auditing, GALOSI brings more value in services that go beyond their specialized recovery auditing services to the accounts payable and accounts receivable (AP/AR) departments. Upon completion of the audit, they will provide valuable recommendations for strengthening a company’s internal AP/AR process after the merger or acquisition. Oftentimes, this is more valuable than the audit itself.

When two companies merge or one acquires another, the biggest challenge for the new entity is consolidation. Departments that may have been ignored in the past are in the spotlight as the new organization decides how to efficiently combine the two, where cuts can be made and how to streamline operations of the new department.

Areas that will receive heavy attention during this process are the finance/accounting department. The accounts receivable and accounts payable departments are the most connected to the recovery auditing process of finding lost profits by auditing the company's invoices and vendor relationships to recover money that is already owed to the company. This connection becomes even more valuable during a merger or acquisition.

There are several measures that must be taken when consolidating the departments at two different companies, all of which can benefit tremendously from the presence of a profit recovery audit team. The areas include:

-        Existing Vendor Files: Sometimes, merging companies might not be in the same industry but it is likely that there will be several different vendors providing the same service or goods to each company. In this case, the new company must consolidate their vendor base and decide which vendors to pursue a relationship with moving forward from the merge or acquisition. It is helpful to have the insight of a recovery auditing firm like GALOSI who can manage the vendors on a neutral, respectful basis so they may provide the merging companies with information on which vendors are more accommodating to negotiate pricing, maintain accurate billings and their overall level of cooperation during the recovery audit process.

-        Invoice History and Records: Maintaining invoices is a crucial role of the AP/AR departments. A profit recovery audit will help to establish an understanding of how complete each department's invoice history is and how efficient each system performs to retrieve the information quickly and accurately. GALOSI provides custom software that recreates transaction records to help sort through and organize the data. The use of this software will not only find money already owed to the company, but also help the auditing firm suggest more accurate, long-term solutions for record keeping.

-        Maintaining Tax Information: Tax information, such as 1099 forms, becomes more valuable than ever when going through a transition. A tax recovery audit, such as the one performed by GALOSI, will sort through the tax codes that vary from state to state and bring the company up-to-date with the multiple changes in code that occur each year. The tax recovery audit will asses these tax code changes and even apply them retroactively, which translates into more dollars back into the company’s bottom-line.

-        Identifying Department Procedures: Conducting a profit recovery audit to the AP/AR departments before or during the transition allows for an objective review of each department's policies and procedures to determine the processes work and those that do not. As the merging of the departments begins to form one efficient entity, this allows for the new entity to utilize only the best practices from the original departments.

There are many benefits to partnering with a recovery audit firm during a merger or acquisition including the little to no upfront fees involved. And aside from the recovered profits, the consultation and suggestions provided for streamlining internal process only strengthen the newly formed company for the next phase.

About GALOSI

GALOSI, a profit recovery audit firm with millions of recovered dollars, has the expertise and tools to conduct pre-merger/acquisition recovery audits. With customized software and capabilities for any type of audit, GALOSI has proven their notable ability to recover large amounts of money for any type of company in any industry.