Stout provided buy-side financial due diligence services to a private equity platform acquiring clinical research sites in San Juan and Mayagüez, Puerto Rico. The target company conducts Phase I-IV clinical trials across a broad range of therapeutic areas, including endocrine and metabolic disorders, immunology, hepatology, infectious diseases, oncology, respiratory conditions, and rheumatology.

Stout’s Financial Due Diligence team conducted a comprehensive quality-of-earnings analysis, along with detailed assessments of net working capital and net debt. The team performed key analyses, including normalization of various revenue and expense items, the establishment of a payroll accrual, and a break-even analysis to assess the company’s relatively fixed cost structure.

The break-even analysis played a pivotal role in helping the client understand the volume of patient visits required to cover overhead expenses and the corresponding impact on profitability and margins.

Stout’s work uncovered insights that informed the investment thesis and provided the client with the financial clarity necessary to proceed with confidence.