What we’re doing to help fight COVID-19 now Read More

Case Study: Mergers & Acquisition Due Diligence – Video on Demand

Mergers/Acquisition Due Diligence: Our client was considering an acquisition of a new video-on-demand technology product company. They hired us to understand the target’s brand strength, development team, technical viability, and customer growth prospects.

Mergers/Acquisition Due Diligence 

By conducting extensive primary research on their TAM (total addressable market), we sought to understand the client’s market demand, their ability to maintain the target’s customers, and the viability of the technology. Technical threats and opportunities associated with the acquisition were also examined in detail.



The target’s eccentric founder and his (lack of) management style complicated matters as we worked to understand the technical foundations of the product. With no middle-management layer in place at the target, there was concern that the value of the company would disappear when the developers left the building.

To complicate matters further, the desired code base was part of a monolithic product with no clear delineation of what parts did what. This presented an intellectual property challenge as various dependencies were untangled.  

Due to the founder’s personality, extra emphasis was placed on the identification of poison pills, silent partners, ownership structure, and financials. Culture fit was evaluated as the target’s technical team was in Hong Kong and the client’s entire development team was in Silicon Valley.



The acquisition was completed successfully. Our recommendation included highly lucrative retention agreements for the founder and development team plus a restrictive IP sharing agreement to offset the risks of a shared monolithic code base.

Understand the trade-offs of technical debt

How do you strike the right balance between feature development and the handling of technical debt? New white paper now available.

Learn more about M&A Due Diligence Services

Related Case Studies & Resources

Sphere Partner Optimizes Roof Asset Management

Sphere Partner Optimizes Roof Asset Management

Sphere Partner Optimizes Roof Asset Management   The Challenge A Sphere Software partner was hired by one of the largest commercial roofing companies in the United States. This particular roofing client has thousands of customers across the country, and up until...

Case Study: Software Division Carve-Out by Private Equity Firm

Case Study: Software Division Carve-Out by Private Equity Firm

TURNING LEGACY APPS INTO A NEW REVENUE STREAM A mid-market PE firm acquired a software division of a global information provider to carve out a new entity that would consolidate the large portfolio of on-premises legacy applications into a SaaS platform. The new...