Insight

Startup acquisition engineering lessons: what actually matters

After working on platforms that went through acquisition (Rupa Health, OddsJam) and supporting technical due diligence for others, we've seen what acquirers actually evaluate—and what founders often miss. This article distills the engineering patterns that make platforms acquisition-ready, not just acquisition-possible.

Written by Aravind Srinivas, early engineer at Rupa Health and Founder & CEO of HyperNest Labs. This article reflects public information and operator perspective—no speculation on confidential details.

Table of contents

What acquirers actually evaluate (beyond the code)

Acquirers don't just look at your codebase—they evaluate your entire engineering system:

Reliability history: Uptime metrics, incident logs, and how you've handled outages in the past
Scalability evidence: Can the platform handle 2x, 5x, 10x traffic? What breaks first, and how have you planned for it?
Team and process: How do you hire, onboard, and retain engineers? What happens when key people leave?
Security posture: Security assessments, incident response plans, and compliance with relevant regulations
Technical debt: Not just how much exists, but how you track it, prioritize it, and burn it down

The best time to start building this story is long before acquisition talks begin. Treat every investor update, board deck, and internal review as rehearsal for future diligence.

Integration feasibility: what makes platforms acquirable

Acquirers want to know: can we integrate this platform into our existing systems without a multi-year rewrite? The answer depends on:

API design: Clean, well-documented APIs make integration feasible. Tightly coupled monoliths make it hard.
Data model clarity: Can you explain your data model in a way that acquirers can evaluate? Is it normalized, consistent, and well-documented?
Domain boundaries: Clear separation between different parts of the system makes it possible to integrate incrementally rather than all at once.
Dependency management: How many external dependencies do you have? Are they well-managed, or are you one vendor change away from breaking?

Platforms that score well on these dimensions are easier to acquire because the integration risk is lower. This is exactly what we helped Rupa Health and OddsJam achieve—not by accident, but by design.

Technical risk assessment: what acquirers worry about

Acquirers are risk-averse. They want to know: what could go wrong, and how have you prepared for it? Common risk areas include:

Single points of failure: Systems that depend on one person, one vendor, or one component are risky. Show how you've built redundancy.
Scalability unknowns: If you haven't tested at higher scale, acquirers will assume the worst. Show evidence of load testing and capacity planning.
Security vulnerabilities: Regular security assessments and incident response plans show you take security seriously.
Technical debt accumulation: Some debt is normal, but unmanaged debt is a red flag. Show how you track, prioritize, and pay down debt.

The best way to address these risks is proactively: build redundancy before you need it, test scalability before you hit limits, and document your security posture before acquirers ask.

A practical preparation checklist

If you're building a platform that might be acquired, start preparing now:

Document your architecture: Clear diagrams, decision records, and API documentation make it easier for acquirers to evaluate your platform.
Track reliability metrics: Uptime, latency, incident volume—these numbers tell a story that acquirers can evaluate objectively.
Build clean integration surfaces: Even if you're not planning to be acquired, clean APIs and clear domain boundaries make your platform more valuable.
Prepare the dataroom: Keep architecture docs, security assessments, and reliability histories up to date. Don't wait until acquisition talks start.
Plan for key person risk: Document critical knowledge, build redundancy in key roles, and show how the platform can operate without any single person.

For teams preparing for acquisition or major rounds, see our technical due diligence for startups page or explore fractional CTO support for fundraising and diligence.

Startup acquisition engineering lessons: what actually matters

What acquirers actually evaluate (beyond the code)

Integration feasibility: what makes platforms acquirable

Technical risk assessment: what acquirers worry about

A practical preparation checklist

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