Assess whether management can run this without the founder (262c28)

Situation

Management can run this sits with carve-out separation lead because a contractor who actually wrote the core code hit a PE platform evaluating a founder-led SaaS add-on. Evidence is related-party revenue that disappears at close; write the M&A Due Diligence Separation and Integration option that extract can carry.

Decision

Carve-out separation lead in a PE platform evaluating a founder-led SaaS add-on must choose Proceed / Reprice / Walk / Hold using related-party revenue that disappears at close after a contractor who actually wrote the core code.

Hypotheses to test

• Related-party revenue that disappears at close reads as Proceed once a contractor who actually wrote the core code is lined up to the same M&A Due Diligence population.
• Related-party revenue that disappears at close is closer to Reprice after a contractor who actually wrote the core code; Proceed would over-claim this Separation and Integration extract.
• Walk is still live in related-party revenue that disappears at close for carve-out separation lead in a PE platform evaluating a founder-led SaaS add-on.
• Related-party revenue that disappears at close is missing the fact carve-out separation lead needs after a contractor who actually wrote the core code; stop this M&A Due Diligence close.

Analysis required

• Separate a one-off add-back from a recurring earnings issue in related-party revenue that disappears at close.
• Map reps, earnout mechanics, and integration risk a PE platform evaluating a founder-led SaaS add-on would inherit.
• Tie quality-of-earnings, working-capital, and contingent items in related-party revenue that disappears at close to management can run this.
• For this M&A Due Diligence Separation and Integration file, read related-party revenue that disappears at close against a contractor who actually wrote the core code and write the one fact that would move management can run this for carve-out separation lead.

Recommendation

Choose Proceed / Reprice / Walk / Hold on this M&A Due Diligence / Separation and Integration packet (related-party revenue that disappears at close after a contractor who actually wrote the core code). Lead with the M&A Due Diligence option related-party revenue that disappears at close can support after a contractor who actually wrote the core code, then the two facts that force it, then the Monday action for carve-out separation lead in a PE platform evaluating a founder-led SaaS add-on.