Background and challenges
For companies preparing for a transaction, commercial performance and market attractiveness alone aren’t enough — investors want to see whether underlying technology can support future growth and is prepared to capitalize on artificial intelligence (AI) advancements. That was the situation for a healthcare information technology software and services provider approaching a sell-side diligence. The business had built a robust ecosystem of proprietary and third-party solutions, but leadership recognized that questions about scalability, architecture maturity and vendor dependencies could weaken investor confidence if left unanswered. The engagement exemplified how early integration of commercial and technology diligence can shape both deal positioning and investor perception.
Approach
From the outset, the engagement was structured as an integrated commercial and technology diligence, ensuring that technology findings informed valuation discussions and the deal narrative in real time. L.E.K. Consulting embedded technology diligence and a solution maturity assessment into the sell-side process. The work involved a deep look at how the company’s technology underpinned its commercial strengths. Specifically, the team:
- Examined internal capabilities such as solution architecture and product management to evaluate how effectively the core platform was managed and improved
- Analyzed the full stack of proprietary solutions for scalability, reliability, flexibility and performance — aligning the differentiation of these in-house solutions with where the market placed value and identifying gaps where off-the-shelf alternatives could not compete
- Reviewed third-party vendor partnerships, surfacing both strengths and risks — including potential vendor lock-in — and identifying opportunities for development
- Assessed key maturity dimensions spanning architecture, scalability, security posture, team capability and roadmap readiness to provide a holistic view of the technology’s ability to scale and support growth
This integration of technical and commercial diligence ensured that the findings translated directly into a compelling investment story.
Results
The final report linked technology maturity directly to commercial opportunity, demonstrating that the company’s architecture was both reliable in the present and flexible enough to support future growth. It also clarified the role of third-party solutions, highlighting where they added value and where risks required attention.
Beyond validating the technology, the assessment helped our client:
- Refine the deal model by phasing capital expenditure investments and identifying opportunities to reduce transition service agreement (TSA) costs — insights that directly supported valuation discipline and investment timing
- Define TSA scope and Day 1 and Day 100 priorities, sequencing critical technology upgrades and vendor transitions to maintain business continuity post-close
- Review the verified baseline posture of cybersecurity and controls and prioritize the remediation efforts needed to meet enterprise compliance expectations
- Develop a concise maturity model and scorecard that linked technical findings to the commercial thesis, creating investor-ready outputs that clearly conveyed risk and upside potential
With this foundation, the client could confidently present its technology as an enabler of competitive differentiation, strengthening investor confidence and positioning the business for a successful transaction.
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