Stout provided buy-side financial due diligence and accounting services to a technology platform for the faith ecosystem related to its acquisition of a digital marketing and fundraising business. The deal significantly expanded the size of the client and served as a complementary service to the rest of its portfolio.

We supported the client through quality of earnings analysis, net working capital and net debt assessments, and other transaction support, as well as post-close accounting advisory. As revenue was primarily generated through digital advertising via major platforms, a key consideration for the client was gross versus net revenue recognition which required the review of contracts and relevant accounting literature to determine whether the target qualified as a principal or agent under ASC 606.

Our due diligence services helped support the client’s initial valuation, purchase agreement negotiations, and post-close integration planning through calculating adjusted EBITDA, identifying and modifying reported financials for deviations from U.S. GAAP, and other deal-critical insights.