Stout provided buy-side financial due diligence for a global insurance solutions provider in acquiring an insurance brokerage practice. The target offered strategic regional access in the U.S. and carrier relationships in the surplus lines insurance space. The target was unaudited and not on an accrual basis of accounting, thereby elevating the financial risk profile.

The Stout Financial Due Diligence team performed key analysis, including quality-of-earnings, net working capital, net debt, proof of cash, and other relevant analysis. Several adjustments were identified to normalize earnings and net working capital resulting in favorable purchase price adjustments for the buyer.