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That’s precisely how acquisitions at my current and past company worked. Everyone signs NDAs, there’s a fee paid by the purchaser for the time should they decli
by Moto7451 4y ago
That’s precisely how acquisitions at my current and past company worked. Everyone signs NDAs, there’s a fee paid by the purchaser for the time should they decline the deal, and the audit commences.
I’ve been asked to do the evaluation a few times and it’s pretty straightforward. Even if you think the code is of poor quality, it may still make sense to complete the purchase because of the business case.
- dmak 4y agoNot necessarily. It depends on the company acquiring. I've seen M&As focus solely on the relationships (ex, customers), so the tech DD was just checkboxes without deep dives.
- Moto7451 4y agoNot necessarily… what? This is my actual professional experience. I’m sure people just buy things without any due diligence somewhere but I have never seen it. In one case my judgement was that the customer list was all that there was of value. They opted to not buy that company.
- dmak 4y agoI didn't say they skipped DD.
- shaburn 4y agoWere these companies more public and independently well capitalized or cash fires with little bargaining leverage for asset sales?
- Moto7451 4y agoA mix of everything. The deals are always worth millions of dollars.