Technical Due Diligence
A comprehensive assessment and evaluation of the technological aspects of a company or a project
What Is Technical Due Diligence?
Technical due diligence is typically conducted as part of the process of mergers and acquisitions, investments, or partnerships.
The primary goal of technical due diligence is to provide the potential acquirer, investor, or partner with a thorough understanding of the target company's technology assets, capabilities, risks, and opportunities.
Technical due diligence helps the acquiring or investing party make informed decisions about the risks and opportunities associated with the target company's technology. It is a crucial step in the overall due diligence process, providing insights that can influence the valuation, negotiation, and decision-making processes.
Acquiring a tech company is a complex process. In parallel to the conventional diligence streams (e.g., tax, financial, commercial), you also need to understand whether the potential asset will be able to function and fulfill your investment thesis.
Tech Due Diligence Process
Technical due diligence typically involves a systematic and in-depth examination of various aspects of a company's technology infrastructure, systems, leadership, and processes. The process may vary based on the nature of the transaction or partnership, but generally, it follows a structured approach.
Technology Due Diligence in Mergers and Acquisitions
Our approach to technical due diligence includes the foundational scope as well as a set of add-ons that can be applied based on the nature of the deal.
With our platform, we are able to collect and assess thousands of markers defined by our methodology and compare them against similar companies in the market.
Foundational Scope:
Strategy & Roadmap
Leadership & Organization
Architecture & Infrastructure
Process & Quality
Security
The following areas are explored additionally when applicable to the thesis:
Code Deep-Dive Analysis
Cybersecurity and Open Source
AI/ML Practices and Pipeline
Customer Service Excellence
Professional Services
Companies with a Portfolio of Products
UI/UX & Design
Carve-Out Situations
Corporate IT and internal line of business tools
Portfolio Strategy and Planning
Our Method
Our proprietary method of conducting tech due diligence ensures that your business thesis is thoroughly understood and the company is evaluated against it.
We cover leadership, organization, and development lifecycle areas in addition to technical areas such as code reviews, software architecture, and infrastructure.
An undertone for all these areas is, of course, security - we make sure that cyber-awareness and practice adherence are present at every stage.
IT Due Diligence
Not all companies have software at the heart. Many companies are tech-enabled conventional businesses that innovate by streamlining business processes and building a comprehensive enterprise architecture comprising an integrated set of enterprise tools. This allows companies to enrich their offerings and create economies of scale via process automation.
Intium’s Approach to IT Due Diligence
The approach to IT due diligence is hence slightly different, concentrating on enterprise IT architecture. We’ve developed a bespoke practice allowing us to effectively assess the capabilities of companies utilizing technology as an enabling function.
An in-depth analysis of the company’s line-of-business software, IT systems, and their interrelationships will, among other things, help you plan possible integration strategies, evaluate bolt-on tactics, and understand the general ability of the company to support your thesis.
Hardware & Semiconductors Due Diligence
Technology companies are not all only about software. A company may be concentrating on hardware and semiconductors’ innovation. We’ve devised a specific practice for hardware and semiconductors due diligence and can effectively assess assets active in semiconductor, photonic, radio communications, and electronic industries.
A semiconductors business requires a different approach compared to a software or tech-enabled company.
Our process concentrates on gaining clarity in the asset’s supply chain resilience, quality controls, compliance and intellectual property governance, as well as technology vision & strategy, market fit, and people capabilities. Our extensive hands-on experience allows us to dive deep into each area while retaining a business-oriented mindset.
Hardware Diligence Foundational Scope:
Product, IPR & Design
Leadership & Organization
Development & Operations
Support & Quality
Security
M&A Due Diligence Timeline
3-5 Weeks End-To-End Process
TARGET NEEDED
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3
4
5
6
7
KICK-OFF
Kick-Off Meetings
Introductions
Confirm Thesis
Info Requests
Output Needs
Project Plan
PREPARE
Data Room Access
Info Request Gaps
Key Questions
RESEARCH
Data Room Review
Industry Research
Understand Target
Explore Outside-In
Remote Meetings
SESSIONS
Target Meetings
Initial Observations
ANALYZE
Data Analysis
Benchmark Data
Automatic Scans
Thesis Analysis
REPORT
Follow-up Mtgs
Report Writing
Conclusion
Advisory
NEXT STEPS
Investor Meetings
Project Wrap-Up
