In the context of a Technology Due Diligence, an in-depth analysis and assessment of the application landscape, IT infrastructure, organization and costs is recommended. Depending on the focus, the Technology Due Diligence, IT Due Diligence (IT DD) or Software Due Diligence is a valuable means of securing your investment in the long term.
The aim is to determine the target value through corroborating facts and to realistically evaluate risks for the future.
Our approach within a TechDD is generally based on the business model or core value chain of the target company. For example, we focus differently in the scoping for the Technology Due Diligence of an online community than when taking over a global video-on-demand platform, an eCommerce dealer or a SaaS provider – the personnel, the software basis, the server infrastructure or the contracts with third parties each carry different significance.
The first step is to identify the elements of IT that are crucial to value creation, and to consolidate and prioritize these according to their influence on the business of today and tomorrow.
In the second step, the consolidated work packages are reviewed by our specialists both by analyzing data and by means of interviews (remote or on-site).
Recurring assessment items included in our Technology Due Diligences are
- the technical infrastructure (hardware, backup, scalability),
- the software architecture (technical excellence, development process, legacy code, maintenance effort, extensibility, documentation)
- the operation (scalability, data security, internationalization),
- contracts with third parties (software-as-a-service, infrastructure providers),
- the organization (personnel skills & costs, know-how, processes, atmosphere) and
- the IT costs.