Stout provided sell-side financial due diligence for a top-25 advisory CPA firm that operates as an advisory, tax, and assurance firm along with other consulting offerings, including payroll services, investment banking, wealth management, and more. The business services clients across a broad range of industries and operates in the Southeastern and Southern U.S. with an international service center in Mexico.

Our contributions included support during the entire transaction process. The key deliverables included the quality-of-earnings analysis and supporting report, net working capital analysis, assistance during diligence calls with potential buyers, and purchase agreement support.

During the quality-of-earnings process, we combined the financials from the firm’s historical acquisitions to create an acquisition adjusted view of the business throughout the historical period. We assisted in the analysis of key financial and operational areas for the business, including partner compensation models, revenue recognition for work-in-process jobs, headcount and utilization trends, pro forma impacts of new business lines, and more.

Additionally, our team was closely involved in the review of the purchase agreement terms, including providing critical feedback and preparation of exhibits supporting net working capital.