Baker Tilly assists emerging growth technology company with $300 million sale

Client's need

An emerging growth company required assistance reviewing their financial statements prior to closing their Series A financing round. The goal was to assist them with their complex financing, accounting and corporate governance needs in preparation for a possible high-dollar acquisition.

Baker Tilly solution

Emerging growth technology companies have complex needs that require seasoned and dedicated resources. In order to help the client meet their financial goals, Baker Tilly professionals did the following:

• Worked with client to develop a revenue recognition model for a new medium and format of digital entertainment in light of changing accounting literature for revenue recognition under ASC 605 and 606
• Gained an understanding of the monetization strategy for intellectual property and worked with the client on developing a capitalization strategy of podcast intellectual property
• Performed accounting for complex debt and equity instruments, including issuance of Preferred Stock, Simple Agreement for Future Equity (SAFE) and stock options

Results achieved

The Baker Tilly team was able to help the client successfully close a Series A financing round and prepare them with an exit strategy that led to a high-dollar, successful acquisition.