Stout provided sell-side financial services for a recapitalization and financing for a middle-market, private-equity-owned consumer business. Through five operating entities, the business created, processed, packaged, and marketed beverage products, including juice from concentrate, not-from-concentrate juices, plant-based beverages, and frozen treats.

The Stout Financial Due Diligence team worked closely with management and financial advisors throughout the process in performing a quality-of-earnings analysis. The business sold product to food distributors, retailers, and national branded companies through co-packing. A key component of the diligence included analysis surrounding trade spend reserves for customer rebate and pricing programs.

In addition, analysis was performed related to macroeconomic impacts of COVID, inflation, and the freight market on the pricing terms and margins. The overall quality-of-earnings analysis aided in the creation of the model and supported the business through the recapitalization.