Technical Debt as Risk for Software-centric M&A Targets

Software centric business models pose a challenge for any potential investor. Bad code quality, an outdated code architecture or serious dependencies on people are not obvious but they accumulate to so-called Technical Debt. While the software seems fit for purpose at first sight, maintenance- and development cost, as a symptom of Technical Debt, may escalate soon and puts the future business success at risk. The technology risks of software targets and their technical debt can be analyzed deeply with the appropriate tools in the short time period of a due diligence.

(Our talk at digiweek M&A Europe 2021)