Provided diligence services to a rubber manufacturer

Provided diligence services to a rubber manufacturer

Stout provided buy-side financial and tax due diligence services to a strategic European buyer. The target business was an international distributor of specialized manufactured rubber products predominately for the agricultural market. The target manufactured rubber products, including tools for customer productions.

The Stout Financial Due Diligence team performed quality-of-earnings analysis and net-working-capital procedures. Stout’s analysis focused on the accounting and policies surrounding tooling and cost capitalization methods utilized. The Stout team also assisted in preparing a free cash flow analysis, examined the impact of the Russia/Ukraine conflict on the business, and performed a review of the financial model assumptions. As the strategic client prepared financials under IFRS, Stout performed an analysis on the key accounting impacts of converting from GAAP to IFRS post-transaction.

Stout performed tax due diligence on the acquisition. These services included key analysis and steps around the proposed reorganization, IC-DISC structure, S-Corp elections, state and local tax filings, sales and use tax, and more.