Provided diligence to a PE firm acquiring a distributor of hardware
Provided diligence to a PE firm acquiring a distributor of hardware
Stout provided buy-side financial services for a private equity platform business that manufactures and distributes leather, pet, and supply products. The acquisition was for a distributor of specialized hardware and fittings for luggage, handbags, trucks, leather goods, and more.
The Stout Financial Due Diligence team performed quality-of-earnings analysis, net working capital, and net debt procedures. The Stout team assisted in various analyses, including building sales and gross margin analyses, conducting inventory reserve considerations, and assessing the impact of cash versus accrual accounting.
Stout was involved throughout the process assisting the Buyer with items pertaining to the purchase agreement, earnout calculations, and net-working-capital peg. Additionally, Stout performed tax due diligence on the asset acquisition, which included key analyses around the federal, state, and local tax filing requirements, as well as sales and use tax.
Post-diligence, Stout’s Business Valuation service offering assisted the company in the purchase price accounting of the opening balance sheet through valuing trade name, earnouts, and more.