Tech Due Diligence

WHAT DOES TECH DUE DILIGENCE ENTAIL?

Tech due diligence (TDD) is made up of a comprehensive independent audit and analysis of a company’s technological platform and data strategy in the context of a potential transaction. Its service portfolio includes holistic tech due diligence, a tech readiness assessment, and a tech fact book preparation – all three including a deep dive tech audit.

With the increasing amount of tech providers and increasing complexity in systems, it is more than imperative to perform a tech assessment of a target company before an investment. Our experienced tech experts not only cover holistic tech assessments but also translate them into an easy-to-understand business language for our clients, highlighting the most relevant factors as well as red and yellow flags seen within the target company.

The scope of a tech due diligence includes seven core modules providing a holistic assessment of technology and product scalability including risks and opportunities to support business strategy and growth.
 

1. Tech & product trategy: The first module includes the description of a company's technology and product role in the context of the business and growth strategy as well as the evaluation of the IT roadmap including coverage, timelines and priorities.
    

2. IT infrastructure & system architecture: In the second module, the software architecture and scalability of the tool stack incl. documentation of code and technical debt as well as the front- and back-end infrastructure in terms of interoperability and scalability are evaluated.
    

3. Software development life cycle: In the third module, the tech stack is evaluated  with several components and the development processes and tech stack incl. documentation and degree of automation for developing and maintaining the company's systems and infrastructure analyzed.
    

4. Team and organization: In the Team and Organization module, we evaluate the IT team structure, incl., i.e., involved external parties and how the development team's competencies supports the company's business and growth strategy.
    

5. IT Security & Compliance: Here, we assess the security measures in place incl. documentation and up-to-dateness of Business Continuity Planning and Disaster Recovery Planning.
    

6. Tech financials: In module six, CapEx and OpEx spend is broken down by major product area, including commentary on their alignment with business growth plans as well as comparable peer and industry numbers.
    

7. Data model and quality: In the last module, factors such as the current data model, data architectur and relevant systems are described, an overview of collected data is provided and data inventory and the data quality related to business impact analyzed.