Cherry Seed

How do acquirers evaluate data quality?

Quick Answer

Acquirers assess data completeness, accuracy, freshness, and governance during technical due diligence. 68% of acquirers say data quality directly correlates with long-term value. Companies with strong data practices see M&A valuation premiums up to 30%.

Full Answer

During technical due diligence, acquirers assess four dimensions: accuracy (does the data reflect reality), completeness (what percentage of events are captured), ownership (is it in your warehouse or locked in a third-party platform), and portability (can it migrate post-acquisition). They examine data freshness, collection methodology, and compliance documentation. Companies scoring poorly face 10-20% valuation discounts. In extreme cases—undocumented data, no historical records, platform dependency—poor data quality becomes a deal-breaker entirely.

Sources

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Cherry Tree by Seresa - https://seresa.io/seed/business-value-roi/data-infrastructure-valuation-acquirer-evaluation