Confirmed findings that may affect your decision, negotiating position, or valuation model.
Customer Revenue Concentration
Top 3 accounts = estimated 61% of ARR
Largest single account: 28-32% of total revenue
$4.2M credit facility identified (UCC filing)
Single account loss = probable covenant breach
Confidence: 78% | 6 sources
Leadership Structure Deterioration
VP Eng + VP Product departed Q3 2025, not backfilled
CTO LinkedIn shows "open to work" since Jan 2026
34% engineering team turnover over 6 months
3 of 5 Glassdoor reviews cite "leadership vacuum"
Confidence: 85% | 8 sources
Active Litigation Cluster
Patent infringement: $2.8M alleged damages (federal)
Trade secrets dispute: former engineer at competitor
Customer SLA breach: state court, partially sealed
No evidence of litigation reserves
Confidence: 91% | PACER, USPTO
AI Deployment Without Governance
"AI-powered" features across 4 product lines
Zero governance or QA roles in 18 months
AI-to-governance hiring ratio: 11:0
Support escalation rate up 23% since AI rollout
Confidence: 76% | Job postings, G2
Workforce Hollowing Pattern
CS team reduced 40%, account volume grew
NPS declined from 52 to 34 over 12 months
Response time complaints increased 3x
Roles shifted from CS to "AI Implementation"
Confidence: 72% | G2, Glassdoor
Vendor Dependency Concentration
Single cloud provider, no multi-cloud evidence
Primary data pipeline depends on one API
No DR or failover documentation found publicly
4 major service incidents in past 6 months
Confidence: 68% | Status page, tech stack
Could not be confirmed from available sources. Request documentation directly.
SOC 2 Compliance
Website claims SOC 2 Type II
No attestation letter or audit firm found
Request attestation letter
Revenue Growth Claims
Marketing states "3x growth over 24 months"
Hiring & infrastructure show no matching expansion
Request audited financials
Patent Assignment Chain
Core patent lists departing CTO as sole inventor
Assignment to company not confirmed in USPTO
Request assignment agreements
Enterprise Customer Count
Claims "200+ enterprise customers"
Public evidence supports ~40-55 accounts
Request customer list under NDA
Executive Summary
Taken individually, several findings could be explained. Taken together, they form a pattern worth understanding before formal due diligence.
The revenue concentration and leadership instability are connected. When 61% of ARR sits in three accounts and product engineering leadership has departed, the risk is not just losing a customer — it's that the company may not have the team to retain them. The 34% engineering turnover means the people who built key account relationships are leaving or gone.
The AI governance gap compounds this. Four product lines with zero governance. NPS down 18 points, escalations up 23%, complaints tripled. This is a company replacing headcount with automation and experiencing the early consequences.
The litigation cluster adds financial exposure. The patent matter introduces IP uncertainty. The trade secrets case suggests talent exodus is active defection, not passive attrition.
The target's risk profile is materially different from what its marketing and investor materials present.
Analytical intelligence product. Not investment advice, legal counsel, or a transaction recommendation. Findings based on publicly available information with stated confidence levels.