Stout provided buy-side financial due diligence for three acquisitions in the construction management and related services sector.

Our Financial Due Diligence team conducted comprehensive analyses covering quality of earnings, net working capital, and net debt. We worked closely with the client to validate its preliminary valuations and support the successful closing of each transaction.

Our key areas of focus included normalized EBITDA, with in-depth reviews of revenue recognition policies, specifically percentage-of-completion methodologies and hindsight normalization, as well as evaluations of headcount, compensation structures, and adjustments to various operating expenses.

Additionally, we supported the development of working capital targets and related closing exhibits. Our team also reviewed the purchase agreements and provided feedback on key financial terms.