Stout provided buy-side financial due diligence services to a national firm specializing in outsourced accounting solutions for the grocery and food services industries. The engagement supported the client’s acquisition of a founder-led business focused exclusively on restaurant accounting services, an attractive strategic fit that supported the client’s entrance to the restaurant sector.

We supported the client throughout the sale process. The key deliverables included detailed quality-of-earnings (QoE) analyses, net working capital and net debt assessments, and transaction support related to purchase agreement terms. The diligence process also encompassed analyses of cash-to-accrual adjustments, revenue recognition nuances, and potential synergies.

Our work provided key insights that informed the client’s valuation, investment decision, and post-close integration planning, including refinements to adjusted EBITDA, working capital target setting, required GAAP accounting adjustments, and other transaction-critical considerations.