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

• 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

The diligence process involved with a sale transaction frequently requires a company to conform its financial statements and historical records to U.S. GAAP. Lack of preparedness for this requirement associated with a quality-of-earnings can be an impediment to a successful transaction and often cause unintended delays or cause a transaction to be put on hold. Stout’s Exit Readiness team utilizes their collective accounting and financial reporting expertise to gain a comprehensive understanding of the business and develop diligence-ready financial statements. The outcome enables a cleaner diligence process and tighter close timeline.