Consumer Products

Situation

A branded consumer products company selling through wholesale and direct-to-consumer channels was pursuing a sale. Financial reporting did not consistently reflect the impact of trade spend, promotional programs, returns, and customer deductions. Gross-to-net calculations varied by period, making it difficult to explain true product-level profitability and margin trends.

Our Role

We worked with management ahead of the sale process to clarify revenue and margin presentation. Trade spend, returns, and allowances accounting methodologies were standardized across customer programs, and revenue reporting was rebuilt to clearly distinguish gross sales, deductions, and net revenue. We prepared sell-side diligence materials that normalized margins and EBITDA and tied promotional activity directly to volume, pricing, and channel mix.

Outcome

Buyers gained a clear and consistent view of underlying margins and earnings quality. Margin-related diligence questions were resolved early, reducing friction and shortening review cycles. This improved confidence in the financial story and supported a smoother transaction process.