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.

 

Assessment

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.

 

Outcome

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

Case Study: Fuse

Case Study: Fuse

OVERVIEWFuse Universal Ltd. is a Learning Solutions Company based in London. Fuse designs online learning and knowledge solutions for a wide variety of FTSE 100 and Fortune 500 companies. PROBLEMS / CHALLENGESFuse Universal identified an opportunity to launch a...

Case Study: One Transport Powered By Gett

Case Study: One Transport Powered By Gett

OVERVIEWGett.com is the largest provider of on-demand mobility in Europe — far surpassing Uber — across four countries, 100+ cities, and 7,000 global corporations. PROBLEMS / CHALLENGESGett.com identified an opportunity to provide access to 200,000 new vehicles by...

Continuity of User Experience – Case Study

Continuity of User Experience – Case Study

Founded in 2010, 90Seconds is a video authoring platform that simplifies the complexity of video production, connecting brands to freelance creators through a simple, streamlined workflow. User experience background 90Seconds has three key user roles in...

Case Study: Sphere’s Custom Atlassian Solution for Delta Dental

Case Study: Sphere’s Custom Atlassian Solution for Delta Dental

ABOUT DELTA DENTAL Delta Dental is the largest dental insurance company in the country. This organization offers national dental coverage to more than one-third of the estimated 212 million Americans with dental insurance. It’s a not-for-profit organization that...

Case Study: Blockchain Consulting – Loan Marketplace

Case Study: Blockchain Consulting – Loan Marketplace

OVERVIEW The client - developers of a proprietary secondary loan marketplace that automated the process of combining and splitting loans across multiple lenders - wanted to provide immutable smart contract access for all buyers and sellers. BLOCKCHAIN CONSULTING...

Previous

Next