Stout provided buy-side financial due diligence services to a private equity platform in connection with its acquisition of a Quebec-based wealth management firm with over $1.2 billion in assets under management (AUM). This acquisition supported the client’s continued geographic expansion across Canada and the scale of offerings and capabilities to its clients.

Stout’s Financial Due Diligence team focused on a quality-of-earnings analysis alongside an analysis of the normalized net working capital profile and net debt position of the target. The team also carried out key analyses to understand the historical drivers and events of AUM generation and retention, a cash proof analysis to ensure the integrity of the base financial information of the unaudited target, and a run-rate analysis to provide a forward-looking view on the business based on recent performance.

The Stout Transaction Tax Services team provided tax diligence and structuring advisory on the acquisition. This encompassed key analyses around risks related to income tax, sales/use, payroll and property taxes, and compliance with industry-specific regulations and structuring considerations. Our collective due diligence support led to continued support through drafting of the purchase agreement for a successful closing.