Stout provided buy-side financial and tax due diligence services to a middle-market private equity firm in its acquisition of a global leader in the value-added distribution of original equipment and aftermarket automotive products for the transmission and driveline repair market.

Diligence was conducted on six legal entities across the United States and Canada. In addition to the standard quality of earnings and net working capital procedures, our work included the evaluation of numerous pro forma analyses around footprint rationalization, pricing optimization, and product offering changes. Procedures were also performed on the Company’s methodologies around core accounting, a complex method of accounting specific to the aftermarket automotive industry.

Post-diligence, Stout assisted the company in its purchase price allocation as well as opening balance sheet, and Stout assisted in the implementation of the Company’s adoption of ASC 842 (Lease Accounting) through Stout’s Business Valuation and Accounting, Reporting, & Advisory (ARA) service offerings.