Stout provided financial and tax due diligence to a private equity-backed nationally recognized wealth management firm in its acquisition of a West-Coast based registered investment advisor with approximately $1.6 billion in assets under management (AUM). The transaction supported the client’s geographic, AUM, and advisor expansion and represented its second largest acquisition to date while also contributing to its sponsor-backed growth strategy.

We supported the client through financial due diligence with a quality-of-earnings analysis, net working capital and net debt assessments, analyses of AUM generation and retention, a cash proof analysis, and a run-rate analysis to provide a forward-looking perspective of the target business based on recent performance and post-close synergies. Our tax due diligence team supported compliance and regulatory reporting requirements as well as provided tax structuring advice and tax modeling analyses.

We further advised during drafting of the purchase agreement and provided support throughout the closing and true-up process, working closely with the seller and its advisors to facilitate a seamless transaction close.