Stout provided due diligence services for CohnReznick LLP in securing a strategic growth investment from funds advised by Apax Partners LLP.

CohnReznick, a licensed CPA firm, employs over 5,000 people worldwide across 29 offices. The firm has experienced remarkable organic growth over the past five years, with revenues exceeding $1.1 billion in FY25.

Throughout the due diligence process, Stout’s Financial Due Diligence team worked closely with CohnReznick’s management, including the Chief Financial Officer, Chief Accounting Officer, and Chief Operating Officer, to meticulously prepare comprehensive sell-side financial analyses and supporting materials.

Stout’s contributions included the development of a comprehensive quality-of-earnings (QoE) databook, detailed written reports, net working capital analysis, and net debt procedures. These deliverables were instrumental in guiding management and the investment banking firm as they went to market.

During the quality-of-earnings process, analyses performed included revenue recognition for work-in-process jobs, headcount and utilization trends, profitability by service line, partner compensation models, cash-to-accrual accounting, and other key metrics, ensuring a thorough understanding of the business’ financial performance. A key analysis was the evaluation of profitability by individual service line, and this analysis supported the identification of newly launched service lines, job mix by year, and more, which provided valuable insights and refined the overall financial picture for prospective investors.

Stout and CohnReznick’s management team collaborated closely throughout the process to identify and quantify key analyses that were integral to the business valuation. Additionally, the Stout team played a valuable role in reviewing the purchase agreement terms, providing critical feedback, and preparing exhibits supporting net working capital, indebtedness, and other key items. The transaction closed in March 2025.