Our client, a global gaming technology leader, engaged us to conduct comprehensive due diligence on two complementary US-based casino technology providers. The targets specialised in cashless payment solutions and contactless hardware devices, of which tens of thousands had been deployed on electronic gaming machines across operators in the US land-based market.

Process.

We established a secure Virtual Data Room using Microsoft SharePoint, complemented by comprehensive Master Information Request Lists tailored to each target business. We conducted systematic document analysis across eleven functional areas, followed by structured one-to-one interviews with key stakeholders including C-suite executives, technical leadership, and operational personnel. Throughout the eight-week engagement, we maintained weekly communication with the acquiring business, leveraging specialised domain expertise from the client's internal teams where appropriate, while conducting technical audits of source code, hardware designs, and cybersecurity infrastructure.

We evaluated hardware reliability across deployed devices, reviewed source code architecture using SonarQube analysis, assessed blockchain infrastructure and mobile application frameworks, and validated interoperability with major casino management systems. We analysed revenue concentration risks, inventory management practices, recurring revenue sustainability, sales pipeline conversion rates, and historical financial performance. We mapped licensing requirements across nine US jurisdictions, reviewed GLI interoperability certifications, assessed patent validity concerns, and evaluated cybersecurity policies against industry frameworks including ISO 27001 and SOC 2.

Solution.

Our analysis identified critical customer concentration risk, alongside significant excess/obsolescent inventory from a de-scoped contract creating both balance sheet risk and potential monetisation opportunity. We uncovered significant technical debt including absence of unit testing in the mobile application, limited coding standards enforcement, and framework limitations that could constrain future scalability as the product evolves beyond MVP stage. The review revealed that one target had no live commercial deployments despite innovative blockchain-based technology, while the other demonstrated proven market traction but faced increasing hardware maintenance costs as devices aged.

Outcome.

Our comprehensive risk assessment enabled the acquirer to proceed with the transaction with full visibility into material risks, informing negotiation of earn-out structures tied to specific milestones including pending contract success, new client acquisitions, and product roadmap delivery. The findings directly influenced post-acquisition integration planning, with clear recommendations for proactive hardware maintenance programs, technical debt remediation priorities, and talent retention strategies for key personnel identified as flight risks.