Stout provided buy-side diligence services for a private equity firm acquiring a platform business. The business was a manufacturer and distributor of Asian-focused frozen appetizers and other specialty food items to grocery stores, specialty stores, and distributors.

The Stout Financial Due Diligence team performed quality-of-earnings analysis, net working capital, and net debt procedures. The business was rapidly growing, which led to various analyses around the current run rate of the business, factoring in seasonality, recent wins, and other metrics. The Stout team worked closely with the client in performing the run rate analysis, which was directly utilized in projections and the financial model.

In addition, Stout performed tax due diligence on the stock acquisition, and the work included key analysis around historical structure changes, reorganization, tax attribute carryforwards, franchise, gross receipts taxes, modeled the cost-benefit of various acquisition structures, and more.

Post-diligence, Stout’s Business Valuation team assisted the company in the purchase price accounting of the opening balance sheet through valuing inventory, personal property, tradenames, recipes, and more.