Thursday, January 9, 2014

Application Development Company Due Diligence List (pre-LOI)

What would you add to my company due diligence list if you were looking to acquire an application development company?

Company Ownership and History

1) Who are the present owners and what %?
2) How has the ownership changed since established?

Development Focus

1) Is there an industry focus for the apps? (financial services, real estate, manufacturing, tourism)
2) Is there a business process focus for the enterprise apps? (CRM, Sales, logistics, etc.)
3) Which apps has the company developed for customers and for the company ownership?
4) Which company owned enterprise and consumer apps have ranked in each of app stores? Describe when and how high. 
5) Which platforms does the company develop apps for?
6) Which languages does the company focus on working with?

Management and Employees

1) Provide an organizational chart including geographic locations, job titles, time/years with the company. 
2) Provide a list of employees

Customers

1) How much revenue was from each of the top 5 clients in the last trailing 4 quarters?
2) Describe the typical customers of the company.

Financial 

1) Provide a copy of the latest balance sheet.
2) Provide a copy of the last 2 years income statements.

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