How Tech Foundations Drive M&A Success

In the last two years alone, we’ve seen several of our customers move through major acquisitions or divestments, each with its logic.

AMA Group announced the divestment of ACM Parts, sharpening their focus on collision repair. Billi, a Melbourne-based maker of boiling and chilled water systems, were acquired by the UK’s Strix Group, becoming a cornerstone in their global appliance growth strategy. Cohda Wireless, based in Adelaide, were acquired by U.S. firm Danlaw to strengthen their connected vehicle offerings. QMS Media acquired the remaining stake in MediaWorks NZ, consolidating their trans-Tasman media footprint.

Some of these were exits. Others were expansion moves. In all cases, they highlight one point: it pays to be ready.

Whether you’re the buyer or the seller, deals hinge on visibility across financials, operations, teams, and tools. And readiness, more often than not, starts with the technology underpinning the business.

Why systems matter?

Technology used to be the thing you integrated after the deal. Now, it’s often the reason it happens, or the reason it doesn’t.

If your business is running on spreadsheets, legacy tools, or bespoke bolt-ons that only one person really understands, the risk profile rises, not just for the buyer, but for the future of the business post-transaction.
System readiness underpins valuation, diligence, and integration success.

Readiness means having a clear view of how the business performs. That includes:

  • Centralised systems where data isn’t duplicated or siloed
  • Live visibility into financials, service performance, inventory, and jobs
  • Repeatable processes that don’t rely on manual workarounds or legacy knowledge
  • Integration capability and the ability to plug in or be absorbed with minimal rework

For owners, this translates to cleaner diligence. For buyers, it means faster onboarding, smoother integration, and quicker ROI.

What buyers are looking for.

Most acquirers aren’t just buying revenue. They’re looking for a business they can understand, operate, and scale without friction.

They want:

  • Real-time margin clarity by product, service, or site
  • Normalised financials across the last 12–24 months
  • Defined workflows for quoting, billing, job costing, and customer service
  • Team structure that doesn’t hinge on a founder’s day-to-day involvement
  • Technology platforms that can scale or integrate into theirs without major rebuilds

The red flags? Hidden liabilities, black-box spreadsheets, and fragmented systems make diligence slow or confusing. The clearer your setup, the easier it is to build trust and to hold value through the negotiation.

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When systems affect valuation.

A business with strong systems doesn’t just run better, it demands higher value.

Acquirers are increasingly pricing deals based on how scalable the operation is, not just how much EBITDA it’s generating. If your reporting is patchy, if key data lives in someone’s head or inbox, or if customer contracts and service levels can’t be surfaced in a few clicks, expect more scrutiny or a discount.

Buyers also want to know:

  • Can this business grow without hiring an entire new admin team?
  • Can we consolidate operations without rebuilding the tech stack?
  • Are there gaps that could derail integration: compliance, warranty, contracts, data ownership?

These are the questions being asked in real negotiations. They come up during due diligence, and the answers drive the final offer.

That’s why clarity and visibility matter; they’re what make growth possible, deals achievable, and leadership easier at every stage.

When diligence reveals clean systems, valuations rise. Confidence in scalability is worth money.

What this looks like in practice.

Being “systems ready” isn’t about ticking off an enterprise system install or implementing new software for its own sake. It’s about making your business easier to understand, operate, and trust.

That starts with:

1.

Financial readiness
Know your margin drivers. Normalise earnings. Separate personal and business expenses.

2.

Operational consistency
Use structured job workflows. Automate quoting, billing, and inventory. Log service histories.

3.

Data integrity
Clean up duplicates. Link customers, jobs, warranties, and SLAs. Make your reports real-time, not retrospective.

4.

Team enablement
Train your staff to use the systems, not just work around them. Ensure others can step into your role, or at least run without daily direction.

5.

Scalability
Think like someone buying your business. What would they need to know on Day 1 to keep things moving?

When your technology is structured to surface these answers, you are more attractive to buyers and you run more efficiently. That’s the real advantage. System readiness makes your business easier to grow, easier to manage, and easier to step back from if you need to.

Getting your systems right puts you in control. It helps you understand your value, clarify your direction, and prepare for the opportunities ahead, on your terms.

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