Stout provided buy-side financial due diligence services to a private equity platform in connection with its acquisition of a high-net-worth and family office boutique managing over $2.2 billion of assets under management (AUM). This acquisition supported the client’s continued geographic expansion across Canada and enhanced the scale of offerings and capabilities to its clients.

Our Financial Due Diligence team conducted a quality-of-earnings analysis along with an evaluation of the Target’s normalized net working capital profile and net debt position. To support its evaluation of the Target, we prepared a set of consolidated historical financial statements for the five legal entities included in the transaction not historically prepared by the Target. We also performed a cash-proof analysis to ensure the integrity of the base financial information of the unaudited Target and a run-rate analysis to provide a forward-looking view on the business based on recent performance.

Our Tax Advisory Services team provided tax diligence and structuring advisory on the acquisition, and this work encompassed key analyses around risks related to income tax, sales/use, payroll and property taxes, and compliance with industry-specific regulations and structuring considerations.

Additionally, we supported the review and drafting of the financial and tax aspects of the purchase agreement and preparing disclosure schedules and other exhibits.