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Writer's pictureAvalia

Identifying the Right M&A Target

Corporate and investment funds often encounter numerous hurdles when identifying the right target for mergers and acquisitions (M&A). The process goes beyond financial analysis, requiring a thorough understanding of the potential target's software development processes, team capabilities, and product robustness. The stakes are high, and the margin for error is slim. Missteps can lead to costly integrations, missed synergies, and ultimately, failed investments.


One significant challenge in M&A target identification is the transparency of the target’s software development lifecycle. Companies often have complex and disjointed software processes that are difficult to evaluate accurately. This complexity can lead to unforeseen issues post-acquisition, such as outdated technology stacks, inefficient workflows, or teams that are not aligned with the acquiring company’s culture and processes.


Our approach provides a clear and detailed picture of a target's software development processes, people, and products.

Avalia Systems offers a comprehensive solution to these challenges through our software due diligence services. Our approach provides a clear and detailed picture of a target's software development processes, people, and products. Here’s how we help:


  1. Software Due Diligence: We begin with a thorough assessment of the target’s software development environment. This includes analyzing their source code version control systems (e.g., Git, Microsoft TFS), issue tracking tools (e.g., Jira, Trello), and code quality analysis platforms (e.g., SonarSource). This assessment highlights strengths, weaknesses, and areas for improvement.

  2. Modernization Roadmap: Based on our initial assessment, we provide a detailed roadmap with clear actions and targets to modernize the software development processes. This roadmap is tailored to the specific needs and goals of the target company, ensuring a smooth transition and integration post-acquisition.

  3. Progress Tracking: We help you track your organization’s progress by leveraging your teams’ data and feedback. Using sources such as version control, issue tracking, and CRM systems (e.g., Salesforce), combined with regular feedback from your team collected through our retrospectives app, we provide a factual and up-to-date basis for our collaboration sessions.

  4. Business-Centric Recommendations: No matter what challenges you face in leading your software development organization, we work with you to bring recommendations that are business-centric, data-driven, and produce faster results. Our goal is to ensure that your investment yields the highest possible return by addressing critical aspects of the software development lifecycle.


By partnering with Avalia Systems, you gain the insights and tools necessary to make informed decisions, streamline the integration process, and ultimately achieve a successful M&A outcome. Our expertise and data-driven approach ensure that you are well-equipped to handle the complexities of software development in your target acquisitions.

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