Stout’s Healthcare Financial Due Diligence team provided due diligence for a pharmaceutical services platform as it acquired a market research firm that focuses on the biopharma industry.

Our team conducted a quality-of-earnings analysis, identifying key areas such as cash-to-accrual revenue recognition adjustments, payroll accruals, normalization of commission expenses, and other operating expense adjustments.

We also performed detailed net working capital procedures, highlighting deferred revenue as a significant issue impacting the transaction. Throughout the diligence process, we provided critical insights and maintained close collaboration with the client, offering ongoing support in addressing key matters related to the purchase agreement, rollforwards, and the net working capital peg. This hands-on approach ensured the client was fully informed and well-positioned to make sound, data-driven decisions.

Additionally, our Valuation Advisory and Accounting & Reporting Advisory teams prepared the opening balance sheet, which included the valuation of intangible assets.