Stout provided comprehensive buy-side financial due diligence services to a private equity firm focused on the healthcare sector, specifically supporting the acquisition of a clinical research site. The target company, located in Georgia, specializes in conducting clinical trials across various therapeutic areas, including Alzheimer’s disease, cardiovascular conditions, diabetes, and weight loss, among others.

The Stout Financial Due Diligence team conducted a thorough quality-of-earnings analysis and performed detailed net-working-capital procedures. The team contributed to a variety of key analyses, including adjustments from cash-to-accrual revenue recognition, a review of the company’s operating expense allocations with a related party, the accurate recording of payroll accruals for employee-related costs, and collaboration with the client to assess future headcount requirements.

Throughout the due diligence process, Stout identified critical findings and remained closely engaged, offering continued support in addressing key issues related to the purchase agreement, rollforwards, and the net-working-capital peg. This active involvement ensured the client was fully informed and equipped to make well-grounded decisions.