Technology Advisory: architecture, sovereign cloud and data sovereignty as value drivers

In the vast majority of European tech transactions, technical due diligence reveals gaps that lead to discounts or suspensive conditions. According to Gartner 2024 data, 74% of PE acquirers reduced their initial offer following architecture issues identified in due diligence. Technology advisory is not a cost centre: it is a value-creating function when correctly positioned.

Architecture: readability as a condition of valuation

An undocumented technical architecture is an indefensible architecture. In an M&A context, the acquirer cannot quantify the risk of an architecture they cannot understand — so they apply it in full to the price. The role of technology advisory is to make architecture readable: documented architecture diagrams, identification of critical dependencies, mapping of technical debt with a costed remediation plan.

Sovereign cloud: from regulatory constraint to competitive advantage

The ENISA EUCS framework and the NIS2 directive have transformed sovereign cloud from an option to a requirement for organisations targeting B2G markets, health data or critical infrastructure. An organisation hosted on SecNumCloud (ANSSI), C5 (BSI) or ISGISF (NL) certified cloud has a regulatory asset that can be valorised — particularly in public markets and regulated sectors.

Data sovereignty: the invisible capital that balance sheets do not capture

Data location, flow control and GDPR compliance are not merely legal questions. For an institutional acquirer, the ability to demonstrate customer data sovereignty is a direct de-risking factor: it reduces the risk of post-closing regulatory blockage, clarifies transfer obligations and protects the acquirer from undocumented past commitments.

Technical debt: document to avoid the discount

• Map the debt: identify modules, obsolete versions and risky dependencies
• Cost the remediation: a costed remediation plan by an independent technical third party is more convincing than an internal estimate
• Prioritise before due diligence: resolve identified blocking points (critical vulnerabilities, incompatible licences, hardcoded secrets)
• Present debt as controlled, not discovered: the difference between an avoidable discount and a deal breaker

Aegryn Technology Advisory

The Aegryn approach combines independent technical audit, cloud migration planning and tech due diligence preparation. In advance of a disposal or fundraising, an 8 to 12-week technology advisory engagement addresses blocking points, produces the documentation expected by acquirers and positions the organisation in the best conditions for negotiation.