How M&A Buyers Now Price Customer Data Migration Costs

In this episode of Tech M&A with Fexingo, Lucas and Luna explore a hidden deal-breaker in software acquisitions: customer data migration costs. When a strategic buyer like an enterprise software company acquires a SaaS platform, integrating the customer data into the buyer's existing infrastructure can cost millions and delay revenue recognition. Lucas breaks down a real-world example: a mid-market CRM acquisition where migration costs wiped out 18 months of projected synergies. Luna challenges whether buyers are overcorrecting, pointing to a recent ServiceNow acquisition where the acquirer paid a premium specifically because the target's data schema was compatible. They discuss how deal lawyers now structure indemnification around data migration timelines, and what that means for founders planning an exit. Anchored to current market data, the conversation touches on how declining cloud storage costs (down 12% year-over-year) are shifting migration math. A focused, numbers-driven look at a risk most entrepreneurs don't see coming. #TechM&A #SoftwareAcquisitions #DataMigration #MergersAndAcquisitions #SaaS #StrategicBuyers #DealStructuring #Indemnification #CustomerData #CloudCosts #DueDiligence #IntegrationRisk #BusinessAndTechnology #FexingoBusiness #BusinessPodcast #M&A #PrivateEquity #VentureCapital Keep every episode free: buymeacoffee.com/fexingo