Sell-Side Due Diligence

Accelerate the sale process, unlock value, and identify and mitigate issues early.

Financial Due Diligence

Enlisting the assistance of M&A experts to perform sell-side due diligence prior to a formal sale process allows the seller to retain control, mitigate potential risks, and maximize value with the financial data presented to buyers. Stout experts operate as an extension of your team and provide knowledge and insights throughout a transaction. Our sell-side financial due diligence services are highly scalable and can be tailored to meet your needs. Benefits include:

• Accelerating the transaction process and mitigating financial risks
• Reducing the burden on the finance team and advisors
• Organizing documents requested by bidders’ diligence teams
• Providing net-after-tax cash proceeds from various structuring alternatives
• Increasing the likelihood of receiving informed, quality bids

M&A Tax Services

Stout’s tax experts have the experience and transaction-based knowledge to identify and address any unwanted tax exposures or surprises. We collaborate with clients to arrive at alternative structures and solutions that minimize tax risks and costs. Our experience ranges from small domestic deals to large multi-jurisdictional transactions. Our services include:

• Tax due diligence
• Tax structuring
• Tax modeling and comparative benefit analysis
• Tax attribute studies
• State sales tax and income tax remediation services
• Transaction cost analysis

IT Due Diligence

Stout advisors understand the complexities of separating systems and processes in preparation for a sell-side event. Our approach includes an analysis of system and process entanglements, stranded cost analysis, leverage spend impacts, and preparation of transition service agreements (TSAs). Having an advisor to support the diligence stage not only accelerates the deal process but can also prepare your IT leadership for the future. Our IT due diligence efforts focus on six key areas:

• Operating model redesign
• Organization design
• Systems and business process entanglements
• Stranded costs analysis
• Transition service agreements
• Carve-out readiness

Exit Readiness

Stout understands the sensitivity and urgency required to execute and close a successful transaction. Lack of preparedness for requirements associated with a quality-of-earnings process can be an impediment to a successful transaction and often cause unintended delays or a transaction to be put on hold. Our Exit Readiness team utilizes their collective expertise in the areas of technical accounting, financial reporting, and financial due diligence to gain a comprehensive and efficient understanding of the business and to develop diligence-ready financials fast. This includes helping clients conform their financial statements and historical records to U.S. GAAP and develop a value story tied and reconciled to financial statements and forecasts. These preparation efforts can enable a cleaner diligence process, enhanced deal value, and a tighter close timeline.