Logistics Tech Due Diligence & Rescue
€2.3M
Debt Found
€1.8M
Price Saved
99.7%
Uptime Now
The Challenge
A private equity firm was evaluating a €25M acquisition of a logistics software company. Initial technical review raised red flags: the codebase was poorly documented, key developers had left, and the claimed 'AI-powered optimization' was mostly hardcoded rules. They needed an independent technical assessment before proceeding and, if acquired, a plan to stabilize and modernize.
Our Solution
We conducted a 3-week technical due diligence covering code quality, architecture, security, team capabilities, and technical debt. Our 47-page report identified €2.3M in hidden technical debt but also confirmed the core algorithm was valuable. Post-acquisition, we led a 6-month stabilization effort: documenting critical systems, implementing proper CI/CD, and building a roadmap for the claimed AI capabilities.
Results Achieved
- Due diligence identified €2.3M in previously unknown technical debt
- Acquisition price renegotiated down by €1.8M based on findings
- Critical security vulnerabilities patched within 30 days of acquisition
- System stability improved from 96% to 99.7% uptime
- Engineering team retention improved from 40% to 85% annually
- Platform successfully handling 3x transaction volume 12 months later
Technologies Used
“Cloudrix's due diligence saved us from a potentially disastrous acquisition. Their report was brutally honest but constructive - they didn't just find problems, they quantified them and provided solutions. Post-acquisition, their stabilization work turned a liability into an asset. The investment has exceeded our projections.”
Jonathan Wells
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