Stout provided comprehensive buy-side financial due diligence services to a private equity platform acquiring a diversified network of 22 medical research sites. The acquisition encompassed eight standalone clinical research units and 14 embedded site networks located throughout Florida, Georgia, and Alabama. The target organization conducted Phase I-IV clinical trials across a broad range of therapeutic areas, including general medicine, cardiology, respiratory care, and infectious disease.

Stout’s Financial Due Diligence team performed an in-depth quality-of-earnings analysis, supported by detailed procedures covering net working capital, net debt, and operational normalization adjustments. The team also conducted run-rate analyses to account for newly opened and recently closed sites, identified post-transaction cost synergies, and evaluated margin normalization adjustments related to the financial impacts of COVID-19.

Additional procedures included assessments of revenue recognition practices, cost structure variability, intra-entity allocations, and the integration of site-level financials across disparate systems. Stout also reviewed key financial trends and business drivers to provide the client with a clear, data-driven view of the company’s sustainable earnings potential.

Stout’s insights and hands-on involvement throughout the diligence process enabled the client to make a well-informed investment decision with a high degree of financial confidence.