Stout was engaged to provide a flexible/phased diligence solution to a client evaluating a target in the heating and cooling industry.

The target lacked a robust accounting/finance team structure, which could lead to a drawn-out and inefficient process, which was a concern for our client. We tailored a specific diligence plan to address the client’s immediate concerns regarding the quality of earnings (QofE) and cash proof in an initial phase, allowing them to make a quick “go/no-go” decision. The client moved forward with the transaction.

We completed the diligence by addressing working capital and key debt-like considerations, ultimately identifying several key deal matters. Our flexible yet detailed approach mitigated diligence costs while delivering value to the client in the form of reductions to the purchase price.