Dusseldorf Airport decided to outsource its IT function to SITA. The deal consisted of 9 service lines (e.g. telecommunications, data centre, desktops, telephones, etc.). Revenue c.US$ 20m. p.a.
- Financial controller for the deal.
- Support the business, track actuals, explain variances.
- Manage audit relationship.
- Integrate financial systems, policies, reports.
- IFRS consolidation and purchase price allocation calculation.
- Fair value assessment of assets at date of acquisition.
- Manage outsourced back office functions to ensure they delivered quality services on time.
- German GAAP to IFRS conversion.
- Assess insurance risk and ensure main risks avoided through corporate insurance policy.
- Arrange inter-company loan agreement with legal.
- Ensure accurate and timely transfer pricing invoices.
WHAT WENT WELL
- Unqualified audit sign-off on annual audit and complementary audit note in the Group Audit Management Letter.
- Strong financial control allowed the deal to deliver positive results during the first year.
- Cross-border deals require specialist knowledge of the country (eg. German fiscal unity rules).
- National assets (e.g. airports) are heavily protected by each state. Any local audits often have a wider and more extensive scope than would be normally expected.