Software Acquirers - What were unexpected technical issues you came across?

Great question! First time doing DD on software companies with one in the pipeline I wanted to be sure to not learn by trial and error. Thanks for the value everyone!

You may want to make sure that the code and processes are well documented. That is key for the business to easily, hire and train replacements to developers - if needed.

Also quality of developers/team makes a huge difference. Take a look at support tickets and see how long it takes for the business to fix bugs and add new, requested features. By comparing that to industry peers, you can estimate the quality of the code and team.

Great engineers add a lot of value. I was looking at an acquisition a few years ago. That business had an opportunity to close a large, enterprise deal. But their application's architecture would not work with that prospective customer's security requirements. Over the next week, the lead engineer and team managed to create a brand new layer using high quality, open-source code. That helped them close that sale. After that, they added many other large orgs to their sales pipeline. Unfortunately (for me), they also lost interest in being acquired once these large deals started coming in. 🙂 If you would like more details about this or any other help with your deal, DM me and we can setup a call.

Wish you the best.