Stout provided buy-side financial and tax due diligence services for a private equity-backed packaging supplier of glass, plastic, and metal containers and closures. The acquisition target was a family-owned supplier of plastic, glass, and metal containers and closures, as well as value-added packaging solutions, with multiple locations across the United States. The acquisition expanded the Company’s presence in high-growth end markets including beauty, personal care, pharmaceutical, and nutraceutical, and it added an e-commerce platform supporting small businesses and emerging brands.

Stout’s Financial Due Diligence (FDD) team performed a quality-of-earnings, net working capital, and net debt analysis to assist the Company in assessing the valuation of the acquisition target and supporting the closing of the transaction. Our FDD team focused on normalized EBITDA through various analyses, including identification of non-recurring, non-operational, and owner-related expense adjustments, assessment of potential synergies related to integration and consolidation of shared service functions, and inventory costing. We also developed an adjusted profit and loss statement that allowed the Company to assess the business’ adjusted performance inclusive of the adjustments and synergies identified through the quality-of-earnings analysis.

Additionally, we assisted with Tax Due Diligence services across multiple legal entities, reviewing the purchase agreement for key financial and tax terms, the determination of the net working capital target and closing working capital mechanics, and the integration preparation to align the target’s financial reporting with the Company’s consolidated platform.