Stout provided buy-side financial and tax due diligence to a private equity firm and its portfolio company related to an add-on acquisition of a software platform that streamlines investment compliance, trade supervision, and account monitoring for broker dealers, RIAs, and bank trusts. The deal provided a complementary solution for the portfolio company and further penetration into a desirable industry.

We supported the client through quality of earnings analysis, net working capital and net debt assessments, tax due diligence, and other transaction support. The target had recently modified its go-to-market strategy, resulting in a new run-rate customer sales mix that had an impact on the company’s margins. The business had also executed a material transaction and several cost rationalization measures that needed to be understood and supported to properly recast the adjusted financial statements and analyze comparative periods on a like-for-like basis.