Software M&A deals are easier, faster, and provide higher value when a thorough due diligence investigation has been done. In a transaction where technology has a high strategic impact, it is essential to have a clear understanding of the value of the technology and how it impacts the business objectives of the transaction. Through a series of questions in the due diligence checklist, we can gather the information that helps to connect the business strategy with the technology and then further enables a deep-dive evaluation of the technology because the objectives are clear.
Avalia has extensive experience working with companies to assess the value of technology acquisition and helping organizations build roadmaps for technology evolutions. Through our expertise and numerous implementations of our unique process, we have identified a few key areas that you should look at when evaluating a software transaction.
This sample agenda can guide your discussions with the target, depending on how much time you have.
Basic Agenda: ½ day meeting with the client
| Topic | Who to speak with | How long to focus on |
| Company History | Management | 0.5 hours |
| Product Introduction | Management Product Manager | 1 hour |
| Customer History | Marketing | 0.5 hours |
| People | Management HR | 0.5 hours |
| Development Process | Technology team | 1 hour |
| Operations & Support | Tech Leader | 0.5 hours |
Comprehensive Agenda: 1.5 days meeting with the client
| DAY 1: Topic | Who to speak with | How long to focus on |
| Company History | Management | 0.5 hours |
| Product Introduction | Management Product Manager | 1 hour |
| Customer History | Marketing | 1 hour |
| People | Management HR | 1 hour |
| Development Process | Technology team | 1.5 hours |
| Operations & Support | Tech Leader | 1 hour |
| DAY 2: Topic | Who to speak with | How long to focus on |
| Build: Software Architecture | Lead Architect | 2 hours |
| Run: IT Architect | DevOps | 2 hours |
In the first post of this series, we will cover the company history and background. Understanding the evolution of the company is essential in determining any cultural sensitivities, product resilience, and also how deeply rooted the software may be in the company’s development culture. It also helps to provide the context around the business objectives and plans for growth, and this, in turn, helps us to obtain a deeper understanding of where the technology is heading. You can gather information about this area by asking the following questions:
COMPANY HISTORY AND BACKGROUND
- When was the company founded and/or last acquired?
- List the important events in the company’s history
- Describe the company’s objectives and priorities (current, last six months, next six months)
- Describe any historical mergers, acquisitions, or divestitures
- Describe any historical ownership changes
Enter your details below, to download the full list of questions relating to company history and background:
