Stout was engaged to perform buy-side due diligence on a heating, ventilation, and air conditioning (HVAC) business being carved out of a larger parent company.

The target did not have stand-alone financial statements or a dedicated finance and accounting team. As a result, Stout had to make several key assumptions in constructing the target’s financials and included sourcing data from multiple disparate systems. Rigorous testing and validation of these assumptions were essential to ensure the completeness and accuracy of the financial information.

Through a combination of thorough diligence and a creative, problem-solving approach, Stout enabled the client to gain confidence in the financials and proceed with a successful closing of the transaction.