Provided sell-side financial diligence to a family-owned general contractor
Provided sell-side financial diligence to a family-owned general contractor
Stout provided sell-side financial and tax due diligence services for a founder-owned general contractor based on the West Coast. The business focused on public works projects, including school campuses, athletic facilities, and libraries.
The Stout Financial Due Diligence team performed sell-side services, including organizing the financial information of the business, analyzing the revenue recognition of the business, reviewing and analyzing the financial terms of the purchase agreement, analyzing the working capital peg, and reviewing the funds flow.
The business recognized revenue under the percentage-of-completion method of accounting, and this was further analyzed in diligence through a lookback analysis on jobs and recasting of revenue. The process increased the value for the company, resulted in a more beneficial transaction structure, and allowed key members of management to continue to run the day-to-day business while Stout assisted with the sale process.
The Stout Tax Due Diligence team performed sell-side services on the acquisition, including providing key tax structuring and modeling related to various equity structures, analyzing the tax terms of the purchase agreement, and more.