How do you protect yourself against a bad acquisition?

More than $2 trillion is spent on M&As every year, yet failure rate is 70%-90%. Technology is an incredible source of capacity, competitiveness, innovation, quality, and agility. It is a competitive differentiator. But it can also be the reason for failure.

If your acquisition target provides services, their software coordinates workflow, customer service, builds loyalty, and tracks KPIs. If your acquisition target creates products, their software controls production, stock management, marketing, sales, and distribution. Most organizations are driven and supported by software. In many ways, every company is a software business.

To protect your acquisition from the wrong technology fit, Sphere’s team of experts work closely with your M&A team to provide an unbiased evaluation of your potential target.

Questions we help you address

  • Which risks exist as a result of how the software was written and architected?
  • What is the value of the existing code and how well does it fit with other code currently in place?
  • Can the system scale?
  • Are there flaws in the system?
  • Do points of failure exist?
  • What security vulnerabilities exist and based on future integration plans – do the security flaws impact future integration?
  • How complete is the documentation? Is it understandable?
  • Are the change management and release management processes sufficiently mature and robust?
  • What is the technical maturity of the development team?

M&A Case Studies

More case studies

The 5 Pillars of IT Due Diligence

PROCESSES

PROCESSES

Examination of internal development processes to assess the team’s capability to continue building product, respond to issues, and function as an asset.

TECHNICAL DEBT

TECHNICAL DEBT

Perform code-level analysis and identify measurable aspects of technical debt using a variety of analysis metrics such as complexity, duplication, over-rides, etc.

SECURITY REVIEW

SECURITY REVIEW

Identify high-level security risks that are visible during application security reviews, analysis of static code, review of third-party vendors (cloud accounts, APIs), and other security governance?

SKILLS REVIEW

SKILLS REVIEW

Interviews with top members of target firms technical team to understand proficiency. Group and one-on-one interviews are conducted with leadership and key team members.

IP REVIEW

IP REVIEW

High-level analysis of the software with an eye toward identification of intellectual property risks and associated vulnerabilities.

Why Sphere? Because you can trust us.

Today, every company is a “software” company. We can help you understand what you are buying, before you buy it. We specialize in high-level assessments of a target firm’s software development maturity, architecture, and processes, as well as a complete technical debt assessment to identify risk areas.

We are Investors too. As investors ourselves, we evaluate hundreds of companies each year. Using this research, we can provide a unique perspective for companies considering acquisition as a means of growth.

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Talk to our M&A technical due diligence team

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