When a leading private equity investment firm acquired an established business unit from a publicly traded software company, forming a new investment platform, the new management team partnered with Stout to navigate a variety of valuation issues.
We initially assisted with purchase accounting valuations for multiple domestic and international targets as the company and its investors expanded its platform, capabilities, and scale. Stout not only valued intangible assets and deferred revenue, but also performed international subsidiary equity valuations for internal restructuring and tax compliance purposes.
Annually, Stout provided management with an overall company valuation, which included common equity and option values for IRC 409A and ASC 718 compliance, as well as goodwill impairment testing. When our client’s investors recapitalized the company on three separate occasions, Stout was engaged to advise the board on the proposed transaction and to issue an independent solvency opinion pertaining to the return of capital to shareholders.
Later, when the company and its private equity investors chose to launch an employee investment plan, Stout was again called upon to perform semi-annual valuations of the company’s preferred and common equity to set the price at which employees may buy and sell.
Over the course of a nearly decade-long business relationship, Stout was there to provide a broad range of valuation advisory services for our client’s most important transactions.