Stout provided buy-side financial due diligence for a private equity client in connection with a prospective portfolio company add-on involving an executive education and advisory business focused on artificial intelligence. The company provides executive learning programs, digital content, and strategic advisory services and was transitioning toward a proprietary technology-enabled learning platform.

Our work included quality of earnings, revenue and margin analysis, and net working capital and net debt assessments. Stout also evaluated the company’s transition to accrual-based accounting, related-party revenue-sharing arrangements, deferred revenue, compensation, and other items affecting the comparability of historical results and the expected go-forward cost structure.