Software Due Diligence & M&A Valuation
Software Due Diligence & M&A Valuation
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Know What You’re Buying
Know What You’re Buying
In mergers and acquisitions, the software is often the most valuable (and the most fragile) asset.
Too often, buyers discover after the fact that the codebase they just acquired won’t scale, isn’t secure, or was never engineered with best practices in mind.
FACT: 85-90% of a software product's TCO is maintenance
FACT: 85-90% of a software product's TCO is maintenance
Most don't know this
Most don't know this
Up to 90% of a software product’s total cost of ownership (TCO) comes after launch - in maintenance.
Inexperienced developers and "vibe coders" often overlook this because they don’t understand the full software development lifecycle.
The result is ‘technical debt’: code that’s quick to demo but riddled with hidden costs - stability issues, scalability limits, and dangerous security backdoors.”
214 Alpha helps investors, acquirers, and boards avoid those traps.
With over 30 years of experience in enterprise software engineering and lifecycle management, we provide an independent, expert assessment of existing systems.
What we deliver:
Codebase Audit - Is it built to scale, or just proof-of-concept?
Architecture & Process Review - Development practices, security posture, documentation, compliance.
Risk Identification - Where future failures or costly rewrites are most likely.
Valuation Impact - How software quality affects deal value and post-merger integration.
Actionable Recommendations - Repair, refactor, or rebuild, with realistic cost estimates.
The result: You don’t just buy a company; you know exactly what kind of software foundation you’re inheriting, and what it will take to maximize its value.
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