Technical Due Dilligence
What is Technical Due Diligence?
Technical due diligence is an audit, investigation, or review of a tech company. (a company whose core products or services are digital).
Technical due diligence includes an assessment of companies' products and/or services, information technology architecture and infrastructure, digital processes and security, technology organization and software development cycle, and technology financials.
Why is Technical Due Diligence Important?
Technical due diligence is important for tech companies to analyze such issues that traditional business due diligence might miss.
- A solid technical setup is a key to reach high performance and significantly impacts the company's business competences.
- Modernizing a legacy platform or product requires significant investment in competencies and time.
- It offers a comprehensive risk analysis, that is especially important for technology companies which depend on specific competencies and proprietary internal knowledge.
How to conduct a Technical Due Diligence?
Similar to traditional due diligence, technical due diligence needs access to certain information to be successful. The process is similar to business due diligence.
- Requires access to the target's data, technical setup, and management of technical framework, including the CPO and CTO.
- A technical due diligence will take 2-3 weeks under normal circumstances if the target can provide all the necessary information within this framework.
- Performing technical due diligence requires deep commercial and technical expertise.