M&A Technology Due Diligence
Three Acquisitions, Three Different Answers
Technical Due Diligence
Custom Applications
Business to Business
The Challenge
A publicly-traded events and media company was building a digital commerce platform through acquisition.
Over two years, they identified three targets: a bootstrapped enterprise SaaS platform, a venture-backed B2B marketplace, and a media company with a custom-built conference management system.
Each deal needed to fit an evolving architecture vision. They needed consistent technical evaluation across all three—apples-to-apples comparison that would inform not just individual deal decisions, but their overall M&A strategy.
What We Did
We served as their technical advisor across all three evaluations, bringing the same methodology, and the same staff, to each while adapting to what made each target unique. We assessed teams, technology, processes, user experience, and integration readiness. Working across multiple deals let us see patterns and provide strategic guidance that went beyond any single transaction.
By the time we are involved, the business case has been made. Deals will likely move forward—and they should, when the strategic rationale is sound. Our job is to help leadership understand how technical realities impact their business plan so that they can plan accordingly.
The Outcomes
All three were acquired. The first two followed our investment and integration recommendations—senior leadership hired, legacy systems retired, critical integrations delivered. The third was acquired despite our detailed reservations.
A year after the last acquisition, M&A goals completed and acquisitions integrated, the CTO was clear – our analysis of the opportunities and challenges was spot on and allowed him and the rest of the executive team to plan for and respond to the frictions inherent in an acquisition – they knew what to expect, good and bad.
What We Found
Each target told a different story.
The bootstrapped SaaS needed $3.5M in first-year investment to achieve the vision. The VC-backed marketplace had exceptional product DNA but a critical integration 6-9 months behind schedule—a gap leadership did not know existed. The media company was almost entirely dependent on external contractors, with IP ownership we could not verify because access was refused.
We identified common patterns across all three: technology leadership gaps, technical debt requiring remediation, and the need for formalized security and compliance.
Deliverables
- Comprehensive technical assessment reports for each acquisition target
- Comparative risk matrix enabling apples-to-apples evaluation across deals
- Investment requirements analysis with specific dollar estimates
- Technology leadership and team assessment with hiring recommendations
- Post-acquisition integration roadmap and 100-day plans
- Go/no-go recommendations with supporting evidence
