Are you getting ready to acquire a new company? You’ll need to do a lot of research, especially if you’re acquiring a tech-heavy company. In any case, acquisitions come with a lot of potential risk and reward. How will you know if you’re making the right decision? Well, you can rest easier by performing technology due diligence before you make your merger or acquisition final. Ayoka is here to help you make an informed decision. We have more than 15 years of history in software development. We can help you analyze your risk, your potential reward, and ways that you can improve your new company.
An independent investigation, like the one Ayoka provides, has a lot of benefits for both parties involved in the merger or acquisition. With independent due diligence, the investigator stays objective and neutral. Furthermore, an independent agency brings a fresh perspective that the other parties may not have considered. Therefore, both parties may notice new opportunities for improvement and risk management as a result of the investigation.
During an acquisition, the buying company will obviously want to make sure that it’s getting the right value for the entity that they’re acquiring. Sometimes, companies look sleek and advanced on the outside, but on the inside, they’re dealing with potentially expensive software issues. Due diligence uncovers these issues so that the buying company gets substance instead of fluff. With Ayoka, due diligence goes into every aspect of the acquired company’s technology, determining if that technology adds or subjects value from the investment. With this knowledge, the owners of the buying company can decide whether or not the value is worth the purchase.
Software Quality and Compatibility
Of course, the core technology that Ayoka examines is the software. Software is the lifeblood of most companies, and faulty software can lead to company meltdowns. When examining a company’s software, Ayoka asks several simple questions before going more in-depth. For example, was this company’s software custom designed, or did they buy their software off the shelf? What is the overall efficiency of that software? Has the company’s management performed any updates recently? Furthermore, we’ll determine whether or not their software is compatible with yours. If we notice potential compatibility issues, we may suggest our software integration service.
Time and Effort
Sometimes, the acquired company’s software and other technology may have a high value, but the buying company will still have to put in a lot of time dealing with software issues. For instance, we’ve already mentioned that we’ll find out when this company last updated its software. If the software requires a lot of extensive updates, somebody from the buying company may have to dedicate a lot of time to that process. Furthermore, if the acquired company has applied temporary fixes to long term problems, the buying company will have to find more sustainable fixes. In these cases, the buying company’s owner will have to decide whether the acquisition will be worth the extra time that he or she will have to put into it.
Due diligence also performs security assessments on a company’s software. Of course, one doesn’t have to buy or sell a company to get this kind of assessment. Plenty of business owners seek regular security assessments to protect their businesses. No matter the reason, a security assessment is a great way to make sure that a company is maintaining compliance, especially if it’s a medical or financial company. However, a security assessment goes much further than compliance. For example, when Ayoka performs a security assessment, we figure out how the company’s software stays protected from risks like cyberattacks. We also ensure that the company has performed their own regular security checks, placed any necessary patches, and generally kept their security risks at a minimal level.
When Ayoka performs due diligence, we also look for other areas of potential risk. We’ll find out, for instance, if a company has obtained all of the necessary licenses and documents to run their software. We’ll also find out who owns certain intellectual properties and how each company should handle those facts during the acquisition process.
At Ayoka, we can also analyze the overall workplace culture of the business that you’d like to acquire. Workplace culture can make or break a business, and poor management often leads to poor business culture. We’ll take a look at a business’s productivity, which tells us how seriously staff members take their work. We’ll also examine overall skill level, management abilities, and tech knowledge.
If you’re looking for software due diligence, allow Ayoka to provide what you need. We bring our tech and software expertise into every due diligence operation, providing a complete examination. If you want to make sure that you’re making the right decision, get in touch with Ayoka today. We’re here and ready to help.