Technical Due Diligence

Investing in a startup? Invest with confidence, and know exactly what you’re paying for. 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.

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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 Tech DD

  • Product analysis according to the Investment/Acquisition thesis
  • All technical teams evaluation against a set of performance metrics
  • Company security posture evaluation
  • Deep dive into the Product quality assurance processes
  • Calculation of how the Product is expected to meet the growth projections
  • Code readiness identification for the next phase of growth
  • Inefficient development processes assessment and improvement advising
  • Run post-deal advisory and managed services

Technical due diligence is a process of analyzing and evaluating the product, technology, software architecture, and software development-related processes in an organization conducted by advisors for technology companies whose primary services or products are digital.

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:

  • IT governance, risk, and project management,
  • Software audits,
  • Penetration testing and vulnerability assessment,
  • Performance testing,
  • Software development and Secure SDLC implementation,
  • Cloud infrastructure scalability testing and cost optimization.

Your Cyber Resiliency and Software Quality start here

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Whitepaper: Technical Due Diligence

This whitepaper explores:

  • Why is Technical Due Diligence for digital native products essential before deciding on investment or M&A?
  • What are the different stages and characteristics of product assessment?
  • How does Technical Due Diligence evaluate a service or product’s assets, liabilities, and commercial potential?