Private equity, 2024
Technology due diligence on a $600M fintech acquisition
The situation
A fund was acquiring a fast-growing lending platform. The growth was real, but the technology had been built for a company a tenth of its current size.
What we did
- Assessed architecture, security, data and the engineering team in four weeks, with full access to the code.
- Priced remediation into three scenarios the deal team could negotiate with.
- Wrote the 100-day technology plan for the new owners.
What changed
- $45M of remediation identified before signing
- Renegotiated terms reflecting the findings
- 100-day plan adopted by the new leadership
The lesson
Growth hides technology debt. Diligence is where you decide who pays for it.
Next case study, Wealth management