Provided due diligence and valuation services to life science company
Provided due diligence and valuation services to life science company
Stout provided buy-side financial and tax due diligence services to a European life science company. The client was looking to further expand its product portfolio in the U.S. market by acquiring a medical technology company with a portfolio of advanced biotechnological solutions.
Stout performed financial and tax due diligence on the founder-owned business. In addition to the standard quality-of-earnings and net-working-capital procedures, our financial diligence work included assessing customer retention, understanding the components and build of inventory balances, and understanding the impact of recent supply chain changes on the business. Our tax team also advised on the most efficient tax structure given the company’s U.S. and international operations.
Post-diligence, Stout was engaged to perform an acquisition accounting valuation associated with the acquired assets in compliance with ASC Topic 805. The scope of the project included the valuation of contingent consideration as well as the valuation of intangible assets, including developed products, trade names, and customer relationships. Stout’s team valued all assets outlined in our scope within management’s timeline, and the client was able to meet its financial reporting requirements.
Given the strong relationship established with the client, Stout was subsequently engaged to assist the company with its opening balance sheet and the related journal entries.