Stout provided tax due diligence services to a private equity fund acquiring an S corporation and its subsidiaries in the waste management and construction space.

The tax due diligence involved assessing the company’s S corporation election and status and the potential impact of failure of S corporation qualification on the tax classification of the company and its subsidiaries. This analysis played a material role in structuring the transaction using an F Reorganization, including communication with the deal attorneys on the timing of the complex steps and elections.

Stout’s tax due diligence work also covered the company’s sales/use, property, and payroll taxes, as well as unclaimed property.