Software Integration Solutions For Technology Due Diligence

The mergers and acquisitions (M&A) market is hot. KPMG estimates that dealmakers around the world conducted $5.1 trillion worth of M&A transactions in 2021. The company also reports that deal valuations will continue to rise in 2022. 

With so much money at stake, investors must make sound decisions to ensure positive returns— and that’s why technology due diligence is an important step in the M&A process. Here, we’ll discuss application integration due diligence and how it helps inform investors’ decision-making.

Why You Need Software Integration Due Diligence During an M&A Deal

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Software integration is the process of combining a sub-set of software systems to communicate with each other seamlessly. It is the process of converting a standalone software product into a pluggable component that can be integrated with other software to create a larger solution. Software integration is critical in the M&A due diligence process. During the process, investors want to ensure the software under evaluation integrates with other products in their portfolio. This information is critical to ensuring the integrated products fit together to create maximum value.

During the process, investors evaluate several items that include:

Data Integrity

Data integrity refers to the trustworthiness of the data. It is the assurance that the data is correct, accurate, and unbiased, especially when it comes to syncing with multiple systems. 

Data integrity also enhances the confidence that the system data will not be corrupted, tampered with, or lost during normal operations. This level of validation is especially important in the age of big data. With so much information at stake, even the smallest data format inconsistency could have a major impact on the user’s experience within the application. Data integration platforms can help profile the data to ensure the information is consistent throughout the system. 

Seamless Communication

The integrated systems must provide seamless communications between enterprise applications that are critical to business processes. For example, if two companies are using two different customer relationship management (CRM) tools., each needs to operate seamlessly post-merger integration. 

Application and System Architecture

The system architecture is a detailed description of how the system is designed. It is a blueprint that outlines the major system components and how they fit together. A thorough and well-documented system architecture is critical in highlighting potential areas that might cause challenges for integration.

3rd-Party API Cross-Functionality

This functionality represents the ability of one software program to communicate with a 3rd party vendor’s system via an API, which is a set of software code that enables two programs to talk with each other. Companies leverage the power of APIs to create additional capabilities for the organization. Investors will need to determine if the APIs can be consolidated into one API management platform. 

System Security

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System security refers to how well a system protects its data and processes from unauthorized access or modification. If one system has security holes, it impacts the other and creates a security risk for the entire system.


A system’s scalability relates to the ability to increase processing power, storage, and other resources to accommodate growing workloads. The system under evaluation should be easily scalable to ensure it continues to provide value to customers, all of which ultimately impact the investor’s return on investment (ROI). 


The system must perform its intended functions without failure or interruption. Unreliable systems lead to expensive downtime, which can negatively impact the user experience and business credibility.


A system’s maintainability refers to its ease of upkeep and troubleshooting. A maintainable system is one that meets the needs of its users with the least amount of effort, maintains the desired level of quality with the least amount of rework, and is easy to troubleshoot when it does not meet those needs.

Things Investors Need to Keep In Mind During Software Integration Due Diligence

A successful M&A involves many non-technical factors that investors must consider. Each of these items impacts long-term costs, customer sentiment, and the eventual integration plan.

Specific items to keep in mind are:

Maintenance Costs

If a system is not scalable or maintainable, the investor will need to make additional investments in the long-run to keep it running. In some cases, the cost of maintaining the system can far outweigh the initial cost of acquiring it.

Customer Satisfaction

Customer satisfaction is critical to a company’s viability. Investors will need to continuously make sure integrations work for the core product in order to maintain user trust and brand loyalty.

Product Complexity

Product complexity impacts finances and the system’s ability to interact with other systems. Investors will need to consider how many integrations will be needed to make the product more viable. That information will determine how many tools, resources, and software developers will be needed to perform the work. 

Systems Integration Plan

The system integration plan outlines the necessary items for successful integration. This information is important to understand the scope of work and costs for post-integration tasks. 

With both companies having their own set of products, investors need to determine which systems will be combined,  which systems to keep, and which ones to eliminate. The integration plan also discusses how business processes will be impacted. business processes will be impacted. Lastly, the investment team needs to determine if there are legacy systems involved in the transaction. Because legacy systems may not offer much value and can be cumbersome to maintain, investors need to decide whether to leave these systems behind or modernize them before the integration. 

Why KMS Technology for Technology Due Diligence Consulting?

KMS Technology has proven experience in the M&A technical due diligence process. Our integration services evaluate system integration capabilities for your potential investment. We’ll perform a thorough analysis and alert you to risks or issues you may face. That way, you have the information you need to make a sound investment. 

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