Provided diligence to PE platform acquiring distributor of pet products

Provided diligence to PE platform acquiring distributor of pet products

Stout provided buy-side financial services for a private equity platform business that manufactures and distributes equine, pet, and supply products. The acquisition was for a distributor of specialized protective eye and ear equipment for dogs.

The Stout Financial Due Diligence team performed quality-of-earnings analysis, net working capital, and net debt procedures. The Stout team assisted in various analyses, including building sales and gross margin analyses utilizing source files from multiple accounting systems, bridging the key drivers of gross margin shifts, and assessing the impact of cash versus accrual accounting.

Stout was involved throughout the process assisting the Buyer with items pertaining to the purchase agreement, earnout calculations, and net-working-capital peg. Additionally, Stout performed tax due diligence on the asset acquisition, which included key analyses around the S-Corp qualification, tax basis step-up, sales and use tax, and more.

Post-diligence, Stout’s Business Valuation service offering assisted the company in the purchase price accounting of the opening balance sheet through valuing trade name, earnouts, fixed assets, and more.