Stout provided buy-side diligence for a private equity platform business in the rubber and plastic market. The acquisition was for a custom manufacturer of injection molded plastic parts that are primarily utilized in recreation, aerospace, medical, and other end markets.

The Stout Financial Due Diligence team performed quality-of-earnings analysis, net working capital, and net debt procedures. The Stout team focused on revenue recognition surrounding custom tooling production, analysis around aged inventory, and other industry and market specific analysis. Stout supported the Buyer throughout the process with the purchase agreement, net working capital peg, and roll forwards of the diligence reports. Additionally, Stout performed tax due diligence on the stock acquisition, which included key analyses around the S-Corp election, state and local tax filings, sales and use tax, and more.