At Baker Tilly, we believe that knowledge should be shared. Well-informed decision-making is a practice we live and share, which is why we invite you to discover the exciting world of M&A.
Prepare your product, software, and team to maximize the value of your company.
When a buyer evaluates a technology company, the first thing they look at isn't the numbers—it's the product. The software, infrastructure, development processes, and ability to scale seamlessly determine whether a deal moves forward or cools off.
In technical due diligence, investors look for stability, security, and traceability. If they find improvisation or critical dependencies, they will adjust the price or postpone the transaction. Preparing your technology area before going public is not a luxury: it is a direct way to protect and multiply the value of your company.
For a company to be ready for sale, it must have:
- A robust product backed by simple indicators: availability, response times, and customer-perceived quality.
- A clear roadmap that connects with the market: what improvements are coming, when, and why.
- A sound and documented technical foundation: programming standards, peer reviews, automated testing... No single point of failure.
When assessing a company's readiness for a potential corporate transaction, we rely on the following questions:
Question 1: Modern, scalable, and secure stack
The technological foundation is the backbone of your company. A buyer will want to understand how your software is built, whether it can grow sustainably, and whether it complies with best practices for security and scalability.
- Do you have cloud infrastructure?
- Is it modern, resilient, and secure?
- Can it support 2 to 5 times growth, with layered design, redundancy, and robust security practices?
Scalable, well-documented architecture not only inspires confidence, but also demonstrates operational maturity.
Question 2: Performance, SLAs, and development processes
During the M&A process, buyers will request metrics and evidence. It is not enough to say that your product “works well”: you have to prove it. Implement a metrics and tracking system.
- Do you have performance issues? uptime resueltas?
- Do you monitor SLA compliance?
- Are the processes robust (version control, CI/CD, testing)?
If the answer to any of these questions is uncertain, take the time to perform load testing and stress testing. Consistent performance and measurable processes give technical auditors peace of mind and eliminate uncertainty in negotiations.
Question 3: Code quality and technical debt
One of the main perceived risks in M&A is dependence on tacit knowledge.
- Is the code quality high (reviews/audits)?
- Do you have quality documentation (architecture/APIs)?
- Do you manage technical debt?
Create and keep up-to-date documentation that includes high-level architecture diagrams, API specifications with usage examples, and justifications. A sound and well-documented technical foundation conveys order and continuity, two key attributes for a buyer. Every technology company accumulates technical debt, but what sets companies that are ready for sale apart is how they manage it.
Question 4: Team and continuity of knowledge
Technological value does not reside solely in the code; it resides in the team that creates it. Before a sales process, identify critical roles, individual dependencies, and areas without coverage.
- Have you identified key technical roles?
- Have you mitigated single points of failure?
- Is the continuity of knowledge assured?
The goal is to demonstrate that the business can continue smoothly after the acquisition. The continuity of the technical team is critical to post-acquisition success. Ensure you have retention plans for key talent and that knowledge is sufficiently distributed.
Question 5: Roadmap, compliance, and licenses
Your technology roadmap should be more than just a list of tasks; it should demonstrate vision. Buyers value alignment between the roadmap and market opportunities: where the product is headed, how it stands out, and what technical support guarantees its growth.
- Do you have a 12–24 month roadmap aligned with the market and buyer?
- Have you verified the rights/compliance of third parties and licensed components?
A clear and organized roadmap conveys ambition, but also control. When you present your roadmap to a buyer, you will be able to explain not only what you are going to build, but also why it is the right decision based on real market data.
Perform your exit readiness assessment
Technical preparation for a sale is not a last-minute sprint, but rather an ongoing process that strengthens your company regardless of whether you decide to sell or not. Every improvement you implement today not only increases your potential valuation, but also makes your company more robust, scalable, and competitive.
At Baker Tilly, we use a checklist to prepare companies' products and technologies to achieve maximum valuation on sale. We identify gaps, prioritize improvements, and prepare the documentation that supports a smooth due diligence process. We invite you to complete the self-assessment test to get an immediate overview of your level of preparedness and the steps needed to strengthen it.
Preparing your product for exit readiness does not mean redoing it, but rather aligning technology, equipment, and strategy to show a buyer what your company is really worth. In an M&A transaction, every line of code tells a story; make sure yours speaks of growth, order, and vision.
Do you need help assessing your technical readiness? Our team of technology M&A specialists can conduct a detailed assessment of your current situation and help you create a personalized action plan. Contact us for a no-obligation initial consultation on how to maximize the value of your technology company.
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