Provided due diligence services for a food & beverage company

Provided due diligence services for a food & beverage company

Stout provided buy-side financial and tax due diligence services for a private equity platform business in the food service space. The acquisition was for a multiple-entity food service business providing vending machine, coffee service, dining, catering, and self-service options primarily in the Midwestern United States.

The Stout Financial Due Diligence team performed quality-of-earnings analysis and net-working-capital procedures. The Stout team assisted in various analyses, including understanding the impact of cash vs. accrual as well as understanding the impact of the company’s shutdown during COVID. The Stout team established the run-rate performance of the business, and the run-rate performance was ultimately used to inform the forecast and the underwriting for the client’s platform’s refinancing.

Stout performed tax due diligence on the acquisition, including state and local tax filings, sales and use tax, and more.