7 Areas of Hidden Technical Debt That Increase M&A Costs

Published on AXIAL Forum, August 2016, by John Beauford. He has broad experience in large scale software development and IT for Fortune 100 companies as well as startups. In his spare time, he blogs about technology and business at johnbeauford.com and researches business deals looking for that diamond in the rough. John has a Bachelors degree in Electrical Engineering from Oklahoma State University.


Effective buy-side deal teams are well-versed at issues during due diligence that might impact a deal. But even the most astute deal teams can miss te­­chnical and IT aspects of the target company that can significantly impact the cost of the integration and the return on the investment.

Here are seven often overlooked areas of potential hidden technical debt that acquirers should investigate prior to close.

  • Employee Devices
  • Backend Server Hardware
  • Server Operating System Patches and updates
  • Unsupported/Obsolete Software Applications
  • Paper Dependent Processes
  • Duplication of Data
  • Custom Software

Read the full "7 Areas of Hidden Technical Debt That Increase M&A Costs" at AXIAL Forum ►

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