Stout provided buy-side financial due diligence support to a private equity client that was acquiring a business in the healthcare products space. The business had gone through a restructuring that significantly impacted the normalized profitability and cash flows of the business.

The Stout Financial Due Diligence team performed an in-depth quality-of-earnings analysis to understand the operational changes resulting from these restructuring actions, how they impact EBITDA, and the go-forward run-rate. This included normalized headcount, cost savings initiatives, and pricing actions.

Stout’s work ultimately identified certain risks and run-rate considerations which the buyer was able to incorporate into its valuation.