During due diligence, the buyer is trying to chip away at our valuation multiple by claiming our tech-enabled systems are too reliant on third-party APIs. How do we document our software architecture and mitigate this perceived risk to maintain our agreed-upon multiple?

Question

Tyler Smith · Accepted Answer

Buyers will look for any technical dependency to claim your systems are fragile, using that as leverage to renegotiate the multiple. If your operations rely on third-party APIs, you must prove that your architecture is robust, redundant, and easily maintained. Begin by providing a detailed mapping of your software workflows, showing the exact role each API plays in your delivery model. Prove that you have built-in redundancies, meaning if one service goes down, your system automatically routes to an alternative provider. This documentation shows the buyer that you are not vulnerable to a single point of failure. Next, show them how your internal team manages these systems. Your EOS Accountability Chart should clearly identify who owns your technology integration seat, proving that you have the internal capability to update and maintain these connections without relying on high-priced outside consultants. Show the buyer that your software is a proprietary wrapper that adds massive value to these basic APIs, turning raw tools into a cohesive operational system. By presenting a highly documented, resilient tech stack, you transform a perceived operational risk into a strong selling point that supports your premium multiple.