Stout conducted financial due diligence for a serial acquirer in the heating, ventilation, and air conditioning (HVAC) industry.

The target company operated with a lean and developing accounting and finance function, and its financial statements were not prepared in accordance with U.S. GAAP. Given these limitations, the client sought a flexible, phased approach focused on key priorities to facilitate and accelerate the decision-making process.

Stout developed a tailored diligence plan that addressed the client’s primary concerns, including quality of earnings and a cash proof analysis. Based on the results, the client proceeded with the transaction.

In the subsequent phase, Stout completed a thorough review of working capital and debt-like items, ultimately identifying several critical deal considerations.

This flexible yet thorough approach helped the client manage diligence costs while realizing value through targeted purchase price reductions.