Stout provided sell-side due diligence support to a large corporate industrials company on the divestiture of a non-core division. This division provides professional-grade pump solutions to effectively move water into residential buildings for drinking water, move water into fields for livestock water and irrigation, and remove water out of buildings in dewatering applications.

We prepared a quality-of-earnings deliverable, analyzing the historical results and differentiating between allocated costs and costs directly incurred by the division for purposes of presenting the pro-forma financial statements on a stand-alone basis. Our detailed analysis enabled the buyer to get comfortable with the quality of the carve-out and performance of the business and aligned with their valuation expectations of the business. This ultimately contributed to the successful sale of the division by our investment banking team who we regularly collaborated with to drive deal speed which optimized deal value.