"It became clear after taking control of TIDAL and conducting our own audit that the total number of subscribers was actually well below the 540,000 reported to us by the prior owners,” the company said in a statement sent to USA TODAY. “As a result, we have now served legal notice to parties involved in the sale."
$15 million may be a drop in the bucket for Jay Z, who is reportedly worth over $550 million. But for most entrepreneurs, a poorly researched acquisition like this could be a death blow. So often, we see businesses put significant resources into legal and financial due diligence, while completely neglecting technical due diligence. Just like Jay Z, they are left exposed - paying big bucks for an asset that has not been adequately reviewed for things like stability, scaleability, or security. Unfortunately, the net result typically includes paying retail prices for an outlet mall product.
That is precisely why Delegator offers technical due diligence to companies in the midst of a merger or acquisition. Before you make your next move, consider including technical due diligence alongside your legal and financial research.