Stout provided due diligence services for Frazier & Deeter, a top 50 licensed CPA firm headquartered in Atlanta, Georgia, that provides tax, audit, and advisory services with multiple offices in the U.S., U.K., and India, in securing a strategic growth investment from funds advised by General Atlantic, a leading global investor.

Our Financial Due Diligence team collaborated closely with Frazier & Deeter’s leadership team and their investment banking representative to develop detailed sell-side financial analyses that played a critical role in supporting the go-to-market, buy-side diligence, and transaction closing processes.

Our engagement encompassed the preparation of a comprehensive quality-of-earnings (QoE) databook, in-depth written reports, and other analysis to support the closing of the transaction.

Our QoE analysis included:

1. Combining financials from an acquisition and carving out the results related to a service line disposition
2. Assessing revenue recognition for work-in-process jobs
3. Analyzing headcount, utilization, and profitability by service line trends
4. Analyzing the impacts of changes to partner compensation model
5. Conducting various other analyses to determine the normalized cost structure of the business

Furthermore, we assisted the Frazier & Deeter team in responding to various requests from prospective buyers and played a key role in reviewing the purchase agreement terms and preparing exhibits supporting net working capital and indebtedness.