Stout assisted a publicly traded Tier 1 automotive-products company with its acquisition accounting. Stout was engaged when the target's private equity owner decided to seek liquidity after a successfully effectuated roll-up strategy, which combined three separate companies that manufactured driveline, powertrain, and casting products.
In addition to assisting the company with its preliminary acquisition accounting related to the Form S-4 submission, Stout also performed an analysis to allocate the multi-billion-dollar transaction consideration to the target's three reporting units and determined the value of leasehold interests, machinery, equipment, land, and building improvements for the target's 50-plus operating facilities. Moreover, Stout determined the fair value of the target's inventory and identified intangible assets, which included patented and unpatented technology, licensing agreements, existing customer platforms, and aftermarket customer relationships.
In concert with the acquisition, the acquirer also realigned its reporting structure. Stout assisted in this regard by providing the requisite fair value measurements for allocating goodwill to the new reporting units.