Stout provided buy-side financial due diligence for a publicly traded landscape supplier acquiring a family-owned landscape supply company specializing in seed, fertilizer, and lawn care. The target offered additional depth to the company’s existing geographic footprint and product offerings. The target was unaudited and presented financials on a cash basis of accounting.

The Stout Financial Due Diligence team performed quality-of-earnings analysis, net working capital procedures, proof of cash, and more. The Stout team assisted in various analyses, including understanding the impact of cash versus accrual accounting. A key focus area also related to inventory costing, specifically around recording of vendor discounts and appropriateness of capitalized costs. The work performed resulted in key favorable findings for the client.

Stout was involved throughout the process, assisting management and its executive team with inquiries, net working capital peg, and other financial analysis.