Stout provided buy-side financial due diligence services to a healthcare fund that focuses on the healthcare services and healthcare technology sectors. The client was performing a roll-up of seven regional medical imaging technology sales and service companies.

Financial diligence was performed on seven distinct companies. We established a consolidated databook to present the diligence adjusted financial statements of the seven companies along with synergies identified by our client. The databook and reports were utilized by the client to obtain the lending necessary to complete the transaction. Our diligence was focused on quality of earnings, quality of assets / net working capital (NWC), and net debt. Our client also engaged us to perform site visits and observe inventory at each of the companies’ sites.

Diligence was performed concurrently on all seven transactions, all of which closed within 60 days of each other. We assisted the client with NWC true-ups for each transaction, one of which resulted in dispute. The client recovered 100% of the disputed items. Additionally, Stout assisted the client with a purchase price allocation for all seven transactions.