Buying a business can be a time-consuming and complex process for senior executives in addition to their day-to-day responsibilities. As M&A processes continue to compress in time, it becomes increasingly difficult to uncover potential issues that could affect valuation, structure, or integration.

Relying on an M&A expert to perform financial due diligence provides an efficient and complete set of findings that could impact the outcome of the deal before it is finalized. Stout experts can help identify deal breakers early and limit further resources from being spent. Having an experienced team analyze the ever-growing amount of data made available throughout a transaction can give senior executives the peace of mind prior to executing a purchase agreement.

Our Services

We assist buyers in understanding the key value drivers and risks associated with proposed transactions. Our focus is on identifying issues that may affect quality of earnings, which ultimately impact the valuation and purchase agreement. Our diligence focuses on the following key areas:

• Quality of Earnings – Analyzing the key drivers of the business and evaluating the quality and sustainability of EBITDA
• Quality of Assets – Assessing the composition of the target’s net working capital and evaluating the working capital trends and requirements
• Net Debt – Identifying potential exposures, obligations, and contingencies
• Other Matters – Analyzing historical accounting policies, quality of reporting/information, quality of finance team, and identifying other potential risks

Other Transaction Advisory Services

• Reviewing purchase agreements
• Assisting with post-closing statements and the settlement of net working capital
• Assistance with discussion with internal or external parties
• Observing inventory
• Performing cash proofs

Who We Serve

• Private equity funds
• Corporate development directors
• CFOs
• Corporate controllers
• Tax directors
• Corporate boards