Technology Due Diligence
Deep-Dive Tech Insights for Smarter, Faster, Confident Investments in Technology.
Why Technology Due Diligence
In Corporate Investments like Mergers & Acquisitions, Technology Due Diligence is critical to assess and validate the strengths, weaknesses, opportunities, and risks of the target’s tech stack.
TDD is also key to assess the quality and security of outsourced technology services and is a precious aid to help selling founders to prepare for an investor Due Diligence process.
VeryDiligent TDD service helps you:
- Evaluate scalability, reliability, and code quality.
- Identify and mitigate risks including architecture, security, compliance, etc.
- Plan for post-transaction success.
About Us
Our journey began in the digital sector, providing technology services like software development and project recovery to leaders in enterprise software, finance and gaming. Recognising customer struggles with multiple technology acquisitions – hidden risks, poor code quality, and misaligned architectures – we identified a market gap: the need for thorough, independent, and data-driven assessments.
- Expertise & Best Practices: Deep industry knowledge.
- Fast Turnaround: Quick reaction time.
- Standardised Scoring: Objective evaluation of code quality.
- Independent Review: Ensures confidentiality and trust.
Our approach
We offer end-to-end technology due diligence services. Our collaborative, consultative process includes:
- Understanding your goals and objectives.
- Gathering documentation and code access.
- Analysing architecture, code, testing and processes.
- Reporting findings and recommendations.
We focus on four key areas:
- Application Architecture & Technologies: Assess scalability, security, and technical debt.
- Codebase Analysis: Evaluate code quality using advanced code analysis tools.
- Infrastructure Architecture: Review hosting, scalability, and resilience.
- Software Engineering Organisation: Analyse team structure, SDLC processes, and automation.
Key benefits
Blog
Case studies
A private equity firm needed to assess the technical health of a SaaS platform before acquisition
Solution: We conducted a full code review, architectural assessment, and scalability analysis.
Outcome: Identified critical risks and vulnerabilities, provided a roadmap for post-acquisition improvements.
A venture capital firm required a cybersecurity assessment before investing in a FinTech startup
Solution: We performed a vulnerability scan, compliance review, and risk assessment.
Outcome: Delivered actionable recommendations to strengthen the startup’s security posture.
A venture capital firm required a cybersecurity assessment before investing in a FinTech startup
An Enterprise software house considered the acquisition of a niche SaaS company, whose solution offered a feature missing in our client suite which would have allowed our client to address a new market sector. They were concerned about maintainability and integration of the target solution to their own suite
Solution: Whilst “on paper” the target solution seemed state of the art, a detailed TDD did reveal significant issues with the code base, presenting security and maintainability risks, and making the integration too complex and expensive.
Outcome: Following our recommendations, our customer decided to proceed with the purchase at a revised price, re-build a new version of the solution, and focus on addressing the urgent security and maintainability concerns for the transition period until migration of the target customer platform to the new solution.
Download the resources
Resources
Top 5 Red Flags in Tech Startups During M&A
Mergers and acquisitions (M&A) involving tech startups offer significant opportunities for growth but come with unique risks. Identifying red flags during due diligence is crucial to avoid costly mistakes and ensure a successful integration. Tech startups often operate in fast-paced, innovation-driven environments, which can mask underlying issues that impact valuation and long-term viability. This whitepaper highlights the top five red flags to watch for in tech startups during MA, empowering...
5 Key Questions to Ask During Technology Due Diligence
Technology due diligence is a critical step in evaluating potential investments. For CTOs and software architects, this process goes beyond financial metrics and market potential; it requires a deep dive into the technical foundation of the Target. The right questions can uncover risks, validate scalability, and ensure alignment with long-term strategic goals.
Technology Due Diligence role in Successful M&A
Mergers and acquisitions (MA) are pivotal strategies for business growth, yet their success hinges on thorough due diligence. Technology due diligence, focusing on evaluating IT systems, software, and digital assets, has emerged as a critical component. In an era where technology drives competitive advantage, overlooking technical risks or opportunities can lead to costly post-merger integration failures. This whitepaper explores how technology due diligence enhances MA outcomes by identifying risks, validating...