Since 2013, a healthcare software company has annually engaged Stout to determine the fair market value and fair value of the company's common equity. The company provides next-generation, business-transforming technology products to the healthcare payor market. Our valuations have been used to set the exercise price associated with to-be-granted employee stock options in accordance with Internal Revenue Code Section 409A and financial reporting requirements in accordance with ASC 718. Stout's long-standing relationship with the company has resulted in a deep understanding of the company's operations and complex capital structure, which included seven classes of convertible preferred stock, five warrants to purchase convertible preferred stock, common stock, phantom stock, and tranches of stock options to purchase common stock.

Recently, our client was acquired by one of the world's largest private equity firms to serve as a new platform investment. Following the sale, Stout performed an acquisition accounting analysis of the company's tangible and intangible assets, including personal property, contract assets, trade names and trademarks, developed technology, and customer relationships. Stout also valued the company's deferred revenue liability and determined the fair value of a contingent consideration liability assumed in the transaction. Since then, Stout has been engaged to perform the acquisition accounting for additional acquisitions that have been executed to expand the platform investment.

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