Technical Due Diligence – What To Look For When an Acquisition is Looming
What is technical due diligence?
Technical due diligence is the process of assessing a target company’s technology, including its architecture, infrastructure, and applications. There are several goals when performing due diligence: to identify any risks or weaknesses that could impact the company’s ability to operate, to assess the company’s technical capabilities and capacity, and to understand how the company’s technology fits into its overall business strategy.
Why is it important?
Technology is a critical part of any business, and it is essential to understand a target company’s technology before acquiring it. Technical due diligence can help identify risks that could impact the success of the acquisition, such as outdated technology, poor architecture, or inadequate infrastructure. And, by understanding the target company’s technology, the acquirer can develop a plan to address these risks and ensure a smooth transition. Due diligence can also help identify potential synergies between the two companies that can be leveraged to create value.
What should you look for?
When conducting technical due diligence, there are a few key things to look for:
- Outdated technology: Is the target company using outdated technology? If so, this could pose a risk to the success of the acquisition.
- Poor architecture: A poorly designed architecture can be a major obstacle to success. Make sure to assess the target company’s architecture to ensure it is well designed and scalable.
- Inadequate infrastructure: Is the target company’s infrastructure adequate to support the acquired business? If not, this could impact the success of the acquisition.
- Other risks: There may be other risks associated with the target company’s technology. Be sure to identify any potential risks before acquiring the company.
- Software Bill of Materials: A Software BOM is a good idea for any company to have as it gives stakeholders a view into potential risks as well as being part of a defense against software supply chain attacks.
How can you prepare?
There are a few things you can do to prepare for technical due diligence:
- Understand your own technology: Make sure you have a good understanding of your own technology before assessing the target company’s. This will help you identify any potential risks or problems.
- Know what to look for: Be sure to know what to look for when conducting technical due diligence. This will help you identify any potential
Do you need help with Technical Due Diligence?
If you need help with technical due diligence, there are many reasons to consider us. We are experienced and knowledgeable in the area, and can provide you with the resources and support you need to make sure the process goes smoothly. We will work with you to understand your specific needs and objectives, and tailor our approach to meet them. We are also committed to providing a high level of customer service, and will work with you to ensure you are satisfied with the results.
We are ready to do what’s necessary, from systems architecture reviews to deep dives into code, we can do it all. Contact us today.