Situation
A trade buyer was considering the acquisition of a fast-growing European media and gaming platform as part of a broader growth strategy.
The target organisation had developed strong local market traction, growing revenues, and an innovative market proposition. The acquisition offered an opportunity to expand into a new sector, increase market share, and strengthen the buyer’s presence across Europe and the UK.
Initial perceptions were positive. The business appeared to have a strong product, growing customer adoption, and an experienced technology team capable of supporting future growth.
Challenge
The investment thesis assumed the organisation possessed a scalable technology platform capable of supporting rapid expansion.
However, independent review identified a different picture.
While the business had built an innovative service offering, much of its technology advantage came from integrating publicly available technologies rather than proprietary intellectual property. The platform architecture had been designed primarily for speed of growth rather than resilience, scalability, or operational maturity.
Infrastructure decisions reflected the realities of an early-stage business, but growing customer demand was exposing limitations in performance, resilience, and operational control.
The organisation also faced increasing cyber and operational risks, with limited governance, immature engineering processes, and leadership teams operating under significant pressure.
Without additional investment and restructuring, future growth ambitions would be difficult to achieve.
What Relentica Delivered
Relentica conducted an independent assessment of the technology estate, engineering capability, delivery processes, infrastructure, cyber posture, operational resilience, vendor landscape, and future scalability.
The review focused not only on the current state of technology but also on its ability to support future commercial objectives across multiple markets.
Engineering processes, DevOps practices, security operations, platform performance, infrastructure resilience, operating costs, and leadership capability were assessed to determine whether the technology strategy aligned with the growth aspirations of the business.
The review identified that significant investment would be required post-acquisition to improve resilience, strengthen cyber capability, mature engineering processes, and create a platform capable of supporting international scale.
Recommendations were provided covering future investment requirements, operating model improvements, leadership development, platform modernisation, and risk mitigation.
Client Snapshot
Sector: Media, Gaming and Streaming
Organisation Size: 30 employees with approximately £5m annual revenue
Geography: Headquartered in Stockholm with operations and customers across Europe
Engagement Type: Technology Due Diligence and Acquisition Advisory
Capability Pillars:
- Strategy, Advisory & Delivery
- Private Equity Enablement
Commercial Outcomes
- Enabled the buyer to make a more informed acquisition decision.
- Identified material investment requirements that influenced commercial negotiations.
- Improved understanding of future technology costs and operational risks.
- Helped protect acquisition value by ensuring post-deal investment requirements were understood before completion.
Operational Outcomes
- Identified infrastructure, resilience, cyber, and scalability risks that required remediation.
- Established a clear roadmap for technology improvement and operational maturity.
- Created a foundation for platform stabilisation and future growth.
- Enabled the acquired business to improve engineering quality, delivery standards, and operational resilience.
Leadership Outcomes
- Improved executive understanding of technology-related acquisition risk.
- Created alignment between commercial objectives and technology investment requirements.
- Established a practical technology value creation plan following acquisition.
- Provided leadership with a realistic view of future investment, risk, and growth opportunities.
The Relentica Lens
Technology due diligence should not focus solely on what exists today.
The real value comes from understanding what investment, capability, and change will be required to support tomorrow’s growth ambitions.
The best acquisitions are not those with the lowest risk. They are the ones where the risks are understood, priced correctly, and managed with discipline.