Provided financial due diligence services to an escrow company

Provided financial due diligence services to an escrow company

Stout provided sell-side financial due diligence services to a founder-owned group of escrow companies. The client represented one of the largest escrow companies in its state, operating across 20 offices.

Stout assisted the client in preparing for a formal sales process by performing sell-side financial due diligence. We worked collaboratively with the sell-side investment banking team to establish a normalized earnings before interest, taxes, depreciation, and amortization (EBITDA) used in the auction sales process. Our comprehensive report focused on quality of earnings, net working capital, and the Company’ historical financial statement trends. Stout assisted the Company throughout the process, including multiple roll-forwards of our analysis, responses to buyer inquiries, and the negotiation of the purchase agreement, including the working capital target.

Stout remained engaged post-transaction and assisted in additional roll-forwards of the analysis, which was used to assess and calculate earnouts established as part of the transaction.