Due Diligence pre-M&A
The client (PE firm) is preparing for a significant investment into a startup that already has a proven market success (Serie A funding). However they lack understanding about the startup's technological fundamentals, and they worry about the sustainability of its business model.
While the PE firm has unmatched competencies to assess the non-tech due diligence (Finance, Legal, Insurance, Tax, Compliance, QofE), they rely on experts to carry the tech and untangible part of it.
- Market, commercial diligence, business model assessment and recommendations for sustainable growth,
- Intellectual Property due diligence, including freedom of use,
- IT organization and business continuity assessment,
- Cyber-security evaluation,
- IT back-office review, hardware, CRM, ERP, accounting and licenses management,
Many of the above items led to satisfactory results, while others required specific attention.. A set of recommendations is attached to the report.
Ultimately, the acquisition happened. The PE agreed for a 5M€ investment for 20% of the shares and a voting right on the board of governance.