Israeli-based company acquires US operations

Baker Tilly assists Israeli-owned entity traded on the Israeli stock exchange with operations throughout the US.

The business challenge

A company traded on the Israeli stock exchange (Company) with more than 65 locations and reported annual revenues of approximately $420.0 million in 2010 was growing rapidly. The Company’s business plan called for it to acquire and operate convenience stores throughout the U.S. and they needed assistance with buy-side due diligence, audit, and tax services.

Because their corporate structure included the parent company location in Israel, the Company needed to adjust their reports from the US GAAP basis of reporting to IFRS each quarter.

Baker Tilly’s Israeli network member firm recommended Baker Tilly due to our experience serving international SEC companies, as well as petroleum marketers, and convenience stores.

The Baker Tilly solution

Our team collaborated with our client in the US and Baker Tilly Israel to complete quarterly reviews, annual audits, and annual income tax returns for the Company. Our team:

  • Performed financial due diligence and assisted with pro-forma financial information on acquisitions.
  • Assisted with implementation of purchase accounting, including bargain purchase gains.
  • Assisted with accounting for complex equity, sale-leaseback, and financing transactions.
  • Evaluated procedures and controls of the accounting function.
  • Provided templates to assist the client in preparing audit support.
  • Provided methodology and accounting assistance for restating US GAAP financials to IFRS each quarter for consolidation by parent company in Israel.

Business results

As a result of our services:

  • The client has favorably completed several acquisitions.
  • The management has successfully acquired financing and equity infusions.
  • The parent company in Israel satisfactorily files quarterly reports with the Israeli equivalent of the SEC on a timely basis.
Baker Tilly works collaboratively with mid-market companies providing attest, tax and consulting services to more than 150 public registrants worldwide, including Fortune 1000 companies.