Frequently Asked Questions

Technical diligence is an assessment of a software company's technology stack, infrastructure, engineering practices, and team capabilities—typically conducted as part of a private equity acquisition. The goal is to identify risks that affect deal valuation and opportunities that inform the post-close value creation plan.

Typically 2–3 weeks from data room access to findings delivery. Timeline depends on codebase complexity, number of products, and access logistics. Expedited timelines are possible when deal timing requires it.

Codebase architecture and quality, infrastructure and cloud costs, security posture, CI/CD and deployment practices, data architecture, team structure and capabilities, technical debt, and scalability constraints. This is hands-on—I review code, access production systems (with permission), and sit in management presentations.

A risk-quantified assessment where every finding is tied to dollar impact or timeline risk. Not a 200-page report with generic recommendations—a focused document the deal team can underwrite from, with a prioritized remediation roadmap for post-close execution.

Scale vs. depth. Large firms run 500+ engagements per year with rotating analyst teams. Blackmere is a single principal—the person who reviews the code is the person who presents findings and (optionally) executes post-close. No handoffs, no bench utilization pressure, no incentive to generate billable hours. For a detailed structural comparison, read Two Models for Technical Diligence in PE.

Depth requires constraint. Technical diligence done well means reading code, understanding architecture decisions in context, and producing findings that are specific enough to underwrite from. That level of depth is incompatible with running dozens of engagements simultaneously. Three mandates is the ceiling that preserves quality.

Alone. Principal-only means the person on the call is the person who reviewed the code, wrote the findings, and will execute post-close if retained. There is no delivery team, no junior analysts, and no subcontractors.

No. Growth Street Partners is the anchor client, but Blackmere takes mandates from other PE firms and independent sponsors evaluating software acquisitions.

Engagements are scoped and priced per mandate—not hourly. Pricing reflects the scope and complexity of the assessment, not the number of hours worked. Specific pricing is discussed during initial conversations.

If the diligence findings warrant it, the same principal transitions into post-close execution on a separate engagement. This is optional—but every diligence client to date has chosen to retain Blackmere for follow-on work. Learn more at Post-Close Execution.

Yes. Sell-side technical representation is a distinct service line. Blackmere runs the buyer's playbook from the seller's side—identifying and remediating findings before a buyer's team arrives. Learn more at Sell-Side Technical Representation.

Yes. AI value creation is an increasingly central part of the practice—during diligence, assessing AI readiness and identifying opportunities; post-close, deploying AI systems that create durable advantage. This includes document ingestion, agentic workflows, and deploying open-source models on client infrastructure. Learn more at AI Value Creation.

AI is the most significant value creation lever available to PE-backed software companies right now—but most companies are stuck at Step 0 (basic adoption). The opportunity is in moving portfolio companies up the AI Readiness Ladder and shifting them from selling tools to delivering outcomes. Read the full framework at Operator-Led.

Cloud platforms (AWS, Azure, GCP), modern web frameworks, mobile (Flutter, React Native), databases (PostgreSQL, MongoDB, DynamoDB), CI/CD systems, container orchestration, and AI/ML infrastructure. The specific stack doesn't matter as much as the ability to assess architecture decisions in context and execute remediation.