📣Should you do technical due diligence when buying SaaS companies?
A rather contrarian, but not at all isolated view in the industry is that “if software works, no need to pick it apart”. Focus on the P&L and IP instead. Leave the code alone.
RollUpEurope holds a different view.
In software M&A, source code is the primary asset acquired, perhaps joint first with customer relationships.
Moreover, the quality of the code directly influences post-merger execution, affecting churn rates, new MRR etc.
It is not just PLG: enterprise software businesses tend to carry significant technical debt to the point of obsolescence.
Now, for the firms that do carry out tech DD, approaches vary. Ranging from using third-party consultants like TechMiners to asking the CTO or a tech lead to “fill out a page”.
While each approach has its merits, engaging an experienced provider saves time and money while significantly reducing deal risk.
Over the next four days, we will discuss the following key reasons:
★ Capacity factor
★ The “So What?” factor
★ The strengthen your hand factor
★ The I don’t trust you factor
More on this tomorrow!
For the definitive guide on software rollups, join our blog at 👉 https://lnkd.in/dPB-BN72
🧑🏻🦽Arquiteto de TI no Itaú Unibanco e Professor Especialista na UniFECAF.
1moPablo Rivero thanks for your sharing. How did you convince developers, mantainers, to let their repositories visible to contributors? Don´t they think it expose their weakeness to everyone? you did workshops, hackas and tools to obtain 200 repositories between 26000. how long did it take for this result ?