Stout provided buy-side financial due diligence and accounting services to a private equity client related to an add-on acquisition of a project management software platform tailored to manufacturing and automotive businesses. The deal enhanced the portfolio company’s AI-enabled profit optimization platform that empowers manufacturers to forecast, quote, and execute.

We supported the client through quality of earnings analysis, net working capital and net debt assessments, and other transaction support. The target business reported its financials on a cash basis, which required us to convert its financials to an accrual basis, including the subscription-based revenue. The output of these analyses allowed the client to underwrite EBITDA and served as key information for the purchase agreement and post-close integration.