Mobile applications are central to many acquisition targets. But mobile technology creates platform dependencies, review process risks, and user experience challenges that require specialized assessment.
Mobile-Specific Due Diligence Areas
Platform Strategy
- Native vs. cross-platform: Native iOS/Android offers best performance but higher cost
- Framework choice: React Native, Flutter, etc.—assess maturity and talent availability
- Platform coverage: iOS-only, Android-only, or both?
- Platform version support: How far back is support maintained?
App Store Risk
- App review compliance history
- Risk of policy changes affecting the app
- Payment processing and Apple/Google fees
- Account standing and any previous issues
Technical Architecture
- Offline capability and data synchronization
- Push notification infrastructure
- Analytics and crash reporting
- Security (encryption, certificate pinning, secure storage)
Mobile-Specific Metrics
- Crash-free rate: Should be 99.5%+ for quality apps
- App store rating: Below 4.0 indicates quality issues
- Review sentiment: What are users complaining about?
- Update frequency: Regular updates indicate active development
- Size and performance: Bloated apps affect adoption
Red Flags
- Low app store rating: Quality issues that affect user acquisition
- Outdated dependencies: Security risk and future compatibility issues
- Single platform: Missing half the market (varies by geography)
- Infrequent updates: May indicate limited development capacity
- High crash rate: User experience and retention impact
Key Takeaway: Mobile applications require specialized assessment covering platform strategy, app store risk, and mobile-specific quality metrics. Don't apply web application frameworks to mobile—the technology and business model differ significantly.