Stout provided buy-side financial and tax due diligence services for a private equity platform business in the food service space. The acquisition was a carve-out of a food service business providing vending machine, coffee service, dining, and self-service options in the Midwest with over 25 entities.

The Stout Due Diligence team performed quality-of-earnings analysis focused on carve-out implications, GAAP vs. IFRS considerations, strategic synergies, and more. The analysis included a detailed review of the buyer’s purchasing power and related product rebates compared to the target’s historical records. Stout collaborated with the buyers to identify the impacts of the carve-out on insurance, personnel, pricing, and go-forward expectations under the buyer’s infrastructure.

Stout performed tax due diligence on the acquisition, and the services included transfer tax, sales and use tax, payroll tax, and additional work. Post-diligence, Stout’s Business Valuation team assisted the company in the purchase price accounting of the opening balance sheet through valuing fixed assets, customer relationships, and more.