Technical Due Diligence

Investing in a startup? Thinking about a new business strategy? Bringing a software product to market? Technical Due Diligence assesses risks, system health, and value, ensuring informed decisions and maximizing ROI.

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Typically, Technical Due Diligence (Tech DD) is conducted before a mergers and acquisitions (M&A) transaction, before an initial public offering (IPO), or before the next round of investment. An investor usually initiates tech DD, but a company may initiate Tech DD itself before seeking funds or investment.

Technical due diligence seeks to uncover several IT indicators – including performance, liabilities, key risks and opportunities, and potential investment needs associated with the acquired company’s digital products and IT stack.

What we do during Technical Due Diligence

During Technical Due Diligence, our team conducts a thorough assessment and analysis of the technical aspects of your business or project. Here’s what we do:

Infrastructure Evaluation: We assess your technological infrastructure, including hardware, software, networks, and systems, to identify strengths, weaknesses, and potential risks.
Code Review: Our experts examine the codebase of your software or applications to ensure adherence to best practices, identify any vulnerabilities, and evaluate the overall code quality.
Security Assessment: We evaluate your cybersecurity measures, data protection protocols, and access controls to identify any potential security gaps and recommend improvements to safeguard your sensitive information.
Scalability Analysis: We assess the scalability of your technical architecture, ensuring it can accommodate future growth and handle increased user demand without compromising performance.
Technology Stack Evaluation: We review the technologies and frameworks used in your project to ensure they are up to date, well-supported, and aligned with industry standards.
Performance Testing: Our team conducts rigorous performance testing to evaluate system responsiveness, load handling capabilities, and identify any bottlenecks or performance issues.
Documentation Review: We examine your technical documentation, including architecture diagrams, system specifications, and user manuals, to ensure clarity, completeness, and alignment with industry standards.
Team Evaluation: We assess the skills, expertise, and capacity of your technical team to determine if they have the necessary capabilities to support your project’s goals and objectives.
Compliance Check: We ensure your technical systems and processes comply with relevant regulations, industry standards, and best practices.
Risk Assessment: We identify and evaluate potential technical risks that may impact your project’s success, providing recommendations to mitigate those risks.

TECHNICAL DUE DILIGENCE

This white paper examines the importance of Technical Due Diligence for digital native products in investment or M&A decision-making. It outlines the various stages and features of product assessment and explains how Technical Due Diligence assesses a service or product’s assets, liabilities, and commercial potential.

Our goal during Technical Due Diligence is to provide you with a comprehensive understanding of the technical aspects of your business or project, enabling you to make informed decisions, mitigate risks, and optimize your technical operations for long-term success.

Technical Due Diligence areas:

Technical strategy

A validation of how well the technical and product strategy is aligned with the overall business strategy.

Platform, architecture, applications

Are products kept up to date and is the underlying architecture scalable and modern?

People and software development lifecycle

How does the current organizational setup support operations and processes?

Tech Financials

Are past and planned tech expenditures aligned with the strategy and investment thesis?

IT Infrastructure

Does the infrastructure in place support current processes as well as future expansions?

IT processes and security

How secure is the target in terms of its capability to withstand an unintentional loss of information?

Tenendo offers technical due diligence services for investors and consolidates extensive knowledge and rich hands-on experience of the best industry experts in the following areas: