Despite current economic turmoil, tech companies are still highly sought after by many buyers across trade, venture capitalist and private equity and as a result many businesses will highlight their tech credentials to potential buyers. However, very few companies make sure that their IT capabilities are prepared for due diligence and can withstand rigorous analysis. Smart buyers will focus on IT vulnerabilities that need to be corrected if the growth plan is to be delivered. For example, in our work we have seen the need to replace proprietary ‘glitchware’ or ‘vapourware’ (more common than you think) or overcome tech obsolescence or a limiting tech architecture.
There is a clear opportunity in the market for companies presenting themselves as tech enablers to demonstrate their tech assets to maintain resilience at scale without rework and replacement, looking beyond contractual and intellectual property rights. Most exit readiness focuses on legal, financial and commercial considerations which leave money on the table for one of the most valuable aspects of your business. Investors tend to be risk averse when it comes to tackling an IT deficit, so assurance can be pivotal.
How we can help:
We don’t develop code and we do not resell software and so provide objective assessments of your IT capabilities, which can enable you to assess vulnerabilities to mitigate ahead of due diligence and also support you to articulate your IT governance. For more information, contact hello@linkstoneadvisory.com for a free and confidential initial consultation.
