Stout provided sell-side due diligence support to a private equity firm selling the paint division within an auto parts manufacturer and distributor business. Our team supported the carve-out and divestiture of the paint division, which was a manufacturer and distributor of basecoats, clearcoats, aerosols, primers and sealers, and solvents, among other auto-related chemicals and paint products.

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

During the quality-of-earnings process, the key analysis included the carve-out analysis to quantify potential impacts of the division operating as a stand-alone entity, the constant currency assessment related to the operations of the Canadian division, and the consolidation of pre-acquisition results and achieved synergies for recent acquisitions.

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