Buying a software business, or making an investment requires a due diligence process to help confirm the value of the business and uncover any issues that impact the value, or that will need to be addressed post acquisition. Full disclosure from the due diligence ensures surprises are reduced or eliminated

Acquirers and investors may have the skills to review the Due Diligence findings, but often do not have the resources or experience to manage the due diligence process due to other day to day business priorities. Rourke Advisory’s team augments a buyer’s resources to help execute a comprehensive Due Diligence process. 

The due diligence performed for the purchaser that is buying a software business will include:

  • Reviewing the seller’s financials and exceptions to GAAP that could affect the value . Documenting the exceptions can enable them to be taken into account in the purchase agreements or require the vendor to address or warrant
  • Leveraging Rourke Advisory’s standard Due Diligence questionnaire to uncover issues that will need to be addressed
  • Reviewing Vendor/Customer/Employee contracts to identify issues that need to be reviewed by the firm’s legal counsel or could impact the valuation
  • Managing due diligence phase and provide regular status updates to the purchaser’s team, which frees up the purchasers resources
  • Reviewing the target firm’s sales and marketing capabilities, including market position, branding and synergies with the acquirer’s product line
  • Identifying anticipated cost and revenue synergies to be realized post close and the steps required to realize the synergies
  • Working with a firm’s legal team to ensure that any business issues uncovered during the Due Diligence process are covered in the purchase agreement
  • Building a post close integration plan to protect the investment in the acquired firm by retaining key staff, product knowledge, and clients. A lack of integration planning can result in key staff leaving with their years of knowledge, shortly after the close of a transaction