Aerospace & Defense

Situation

An aerospace and defense contractor performing long-term program work was preparing for a sale. Revenue recognition involved complex contract structures, milestone billing, and timing differences between performance, billing, and cash collection. Buyers focused on backlog conversion, contract economics, and margin sustainability.

Our Role

We supported management in preparing financial materials that clearly explained revenue recognition, backlog, and margins by program. Key accounting judgments were documented and consistently reflected across diligence materials. Buyer questions related to contract economics were managed with clear, well-supported responses.

Outcome

The company progressed through diligence with fewer accounting-related delays. Buyers gained confidence in revenue sustainability and contract performance. This reduced execution risk and helped keep the transaction on schedule.