Stout provided sell-side due diligence services to a nationally recognized assurance, tax, advisory, and wealth management firm in connection with its signed definitive agreement for a significant investment from a leading global alternative asset manager.

Our engagement supported the company, its financial sponsor, investment banker, and management team throughout the sale process, including buyer diligence discussions with several prospective buyers. Stout’s involvement extended across the sponsor’s hold period. During that time, we supported the company on six of its eight add-on acquisitions, helping evaluate pre-acquisition financial data, acquisition accounting considerations, and the impact of acquired businesses on the company’s go-forward structure.

As part of the sell-side diligence process, we prepared quality-of-earnings analyses addressing several key areas of buyer focus, including the incorporation of pre-acquisition data, revenue realization and work-in-process reserves, run-rate revenue associated with new service lines, and other transaction-related adjustments.

The company also made meaningful investments in its offshore operations, including the setup of a legal entity, facility, operating infrastructure, and an India practice supporting both billable work and back-office functions. We evaluated these investments and related cost structure changes to present the current infrastructure of the business on a normalized basis.

We appreciated the opportunity to support the company and its stakeholders through buyer calls, diligence follow-up, and transaction process workstreams. Our analyses helped communicate the company’s growth, acquisition integration, infrastructure investments, and go-forward earnings profile to potential investors, contributing to a successful exit for the sponsor.