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IT DUE DILIGENCE

Uncover the key technology risks of your investment

WHAT IS IT (TECHNOLOGY) DUE DILIGENCE

Investment in a tech company can bring exciting new opportunities, but it certainly poses a risk if not carefully done. There are great number of cases when the acquirer and the target company do have a synergy in their strategy and financials, but fail to meet their growth ambitions, due to unexpected complexity to integrate and scale the technology and operations. One of the reasons is giving too little importance to IT during the acquisition process.  

Today more than ever businesses' success rely on the success of their software products. Therefore, critical review of the outlook of the investment from technology point of view becomes an essential part of almost every acquisition process.  

 

This is what IT Due Diligence aims for. IT Due Diligence is an assessment process of the IT maturity of the target organisation with the goal to

  • Identify any technology risks of the target company.

  • Understand the technology value of the target company.

  • Gain insight in the the future outlook of the target company and its potential to scale.

Geometeric Graph

DID YOU KNOW THAT

the annual SaaS M&A Deal Volume

has doubled since 2015*

*SEG, 2021 annual report

OUR METHODOLOGY

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We evaluate various aspects of the target company's product development, covering all areas - strategy, people, processes and technology. Our goal is to answer the following questions:

Effectiveness: Is there an effective, scalable product strategy and an execution that follows this strategy.

Efficiency: 
Are processes optimised (e.g. standardised or automated) to allow scaling the development.

Quality: 
Are the products future proof and of high quality to support the future business needs.

Profitability: What is the financial benefit of the products developed and the financial future outlook.

THE PROCESS

A typical engagement takes three to four weeks, but it can be adjusted depending on the timelines available and the scope of the work. 

Every case is unique, and we decide together with our customer how to conduct the assessment in the most cost-effective way. Depending on the growth stage in with the target company, or the type of technology, we advise which areas require extensive or just high-level investigation.

IT Due Diligence Quick Scan

When only an initial high-level impression of the potential acquisition is needed to make any further decision, and IT Due Diligence Quick Scan can be the right solution. We commit to get maximal value within short timelines and with limited effort.

INITIATION

INITIATION

We start with understanding the strategic objectives of the investment, and agree on a cost-effective approach to conduct the evaluation.

EVALUATION

The evaluation is an iterative process, where by applying our tools, frameworks, and expertise we assess the input provided by the target, conduct interviews and validate findings with target.

REPORTING

REPORTING

The outcome is an in-depth report highlighting the technology risks of the investment, the potential of the target company to scale accompanied with advice on  improvement in case of a go decision.

Gain control of your tech investment