Mergers and acquisitions bring immense opportunities, but also present financial and operational challenges.

For CommScope, the acquisition of ARRIS introduced them to apexanalytix and started a journey of implementing a robust audit recovery strategy to uncover overpayments and optimize internal controls.

The Challenges of Mergers & Acquisitions

Following the acquisition, CommScope faced the task of integrating ARRIS into its financial ecosystem. The challenges included:

• Multiple ERP Systems – Managing financial data across different platforms created inconsistencies and inefficiencies.
• Decentralized Operations – Varied financial workflows and processes made standardization difficult.
• Differing Financial Controls – Aligning ARRIS’s financial controls with CommScope’s standards required extensive oversight.
• Duplicate Payments & Inefficiencies – Overlapping systems increased the risk of duplicate invoices and payments.

Unifying these disparate processes required meticulous oversight to prevent leakage and ensure a seamless transition.

Strengthening Financial Controls with a Recovery Audit

CommScope partnered with apexanalytix to analyze its accounts payable processes to identify areas of improvement and recover overpayments to its suppliers.

With over 35 years of expertise, apex provided CommScope with an in-depth analysis of its accounts payable processes uncovering duplicate payments and unclaimed supplier credits stemming from rebates, returns and other credits that occur during the normal course of business.

By leveraging apex’s technology-driven approach, CommScope identified opportunities to improves processes and recover funds.

Key Recoveries and Process Improvements Implemented

For many organizations, financial recoveries and process improvements are essential to maintaining profitability and efficiency.

In CommScope’s case, apexanalytix was able to highlight how strategic audits can uncover hidden credits, strengthen compliance, and drive long-term financial health.

1. Accounts Payable (AP) Audit Success

CommScope’s first AP audit with apex resulted in seven-figure recoveries. The audit revealed significant duplicate payments and unrealized credits, prompting the company to adopt preventative measures such as enhanced invoice matching and supplier validation.

2. Sales and Use Tax Audits

Expanding the audit scope to include sales and use tax yielded substantial gains. apex identified over $800,000 in unclaimed property and helped streamline CommScope’s tax compliance processes to prevent future revenue loss.

3. Freight Rate Compliance Audits

CommScope also extended its audit strategy to freight rate compliance. Ensuring accurate application of negotiated shipping rates resulted in cost savings and improved vendor accountability.

4. Implementing Continuous Auditing for Long-Term Benefits

Initially conducted as a one-time initiative, the audit’s success encouraged CommScope to move towards a continuous audit model. By auditing transactions closer to real-time, CommScope reduced financial leakages, improved compliance, and established an early warning system for financial discrepancies.

CommScope’s success demonstrates the power of proactive financial controls. By leveraging audits across multiple areas and transitioning to a continuous audit model, the company not only recovered significant funds, but also built a stronger, more resilient financial framework for the future.

The Impact on Financial Strategy

A strong financial strategy goes beyond cost recovery—it establishes the foundation for long-term efficiency and resilience.

By incorporating apex’s insights into its financial controls, CommScope transitioned from a reactive to a preventive audit strategy, strengthening oversight and reducing financial risks.

Key changes included:

• Centralized Financial Oversight: Standardizing AP processes across global locations improved efficiency.
• Automated Duplicate Payment Checks: Technology to identify potential duplicate payments before approval.
• Supplier Risk Management: Continuous monitoring of supplier activities reduced fraudulent transactions and strengthened partnerships.

These enhancements not only improved financial accuracy but also positioned CommScope for long-term operational resilience and cost savings.

Lessons Learned & Best Practices

Effective financial management requires more than just periodic audits—it demands a proactive approach to risk mitigation and process optimization. For organizations undergoing similar transitions, CommScope’s experience provides valuable takeaways:

• Perform Regular Audits: Even well-structured financial systems have blind spots. Periodic reviews ensure compliance and financial accuracy.
• Leverage Technology: Automated invoice processing and supplier validation tools can significantly reduce manual errors.
• Foster a Culture of Continuous Improvement: Audits should not be reactive. Ongoing monitoring and process enhancements are key to financial resilience.

By adopting these best practices, companies can enhance financial oversight, mitigate risks, and drive long-term operational efficiency.

Conclusion

CommScope’s collaboration with apexanalytix exemplifies the power of strategic audit recovery.

By embracing continuous financial audits, CommScope not only recovered millions in lost funds but also fortified its financial infrastructure.

Organizations looking to optimize their accounts payable and supplier management processes can benefit from a proactive audit approach, ensuring long-term financial health and operational efficiency.

For more insights on financial recovery audits and supplier management best practices, visit apexanalytix.