Technical due diligence

Technical due diligence is the process of analyzing and evaluating either a company or their product/service seen from a technical perspective. This service is usually done early in the process with the purpose of identifying and evaluating potential risks and to assure that the purchaser is making the right choice in terms of functionality, price and time.

We offer technical due diligence as a consulting service for companies who are considering multiple alternatives or just want to get some further assurement when purchasing a new technical product. We work through a checklist of fundamental factors and deliver our findings, assessment and our recommendation as a report when done.

We identify the scalability in a product’s technology and architecture. We also evaluate the working processes of development teams and how well the technical leadership could scale when a product grows and matures.

The technical due diligence process is always led by our experienced tech leads.

To perform and deliver consequent and qualified due diligence we are working with a standardised checklist which is based on five fundamental technical aspects.

To make the due diligence as smooth as possible we also prepare the supplier of the (evaluated) product with what information we want to take part of.

1. Architecture & infrastructure

In our technical due diligence we want to understand the product’s current environment and will therefore ask for access to documentation, architectural charts, scalability, performance indicators, etc. We will also ask for an explanation/presentation on how the product differentiates itself to any competitors.

In terms of infrastructure, the most crucial parts that we need to get explained are programming languages, databases, app servers and all other technologies that are the foundation of the product.

Be prepared as a supplier and get ready to provide the following:

• Product design documents.
• Architectural descriptions.
• Operational metrics.
• API documentation.
• Copy of all source code.
  
  

2. The people

The people behind the product are usually what makes or breaks it. Therefore it is also an important factor to include and evaluate when doing a technical due diligence. We’re especially looking at how well the technical leadership could scale when the product grows and matures.

Be prepared as a supplier and get ready to provide the following:

• Updated organisational chart.
• Resumes of all employees and contractors.
• Anticipated costs.
• A list of how the total skillset is matched with the product, development, maintenance, operations and support roles.
  
  

3. Processes & Workflows

To handle and maintain complex technical products requires planning and a system to execute. So, as in our tech due diligence we want to take part of an organisation’s processes for development, Quality Assurance (QA), security testing, deployment, operations and support. We want to see proof of the processes being effective, cost-efficient and that they can support scalability and continued development of the product.

Be prepared as a supplier and get ready to provide the following:

• Documentations of all your organisation’s processes.
• MRD/PRD documents.
• Performance metrics and KPIs like;
  • Time to version release.
  • Time to fix critical bugs.
  • Security issues.
    
    

4. Intellectual Property and Software Licensing

Intellectual property is one of the most important assets of a technical product. As part of our technical due diligence process we’re evaluating the compliance and strength of an organisation’s intellectual property and software licensing.

Be prepared as a supplier and get ready to provide the following:

• The organisation’s patents.
• A list of open source components used by your team.
• Dependencies.
• Licenses.
• Proof of compliance.
• Agreements and payment documentation of third-party components.
  
  

5. Technology roadmap

The future tells something about the present. And so even in the value, strength and ambition of a technical product. Therefore, when performing a technology due diligence, we want to know a supplier's plan for the future. What products and features that you think are important to the continued success of your solution.

Be prepared as a supplier and get ready to provide the following:

• Release history and planned versions of your product.
• Documentation of all roadmap options considered.
  • Assessment of which options you think are the most strategic and beneficial.
• PRD/MRD documents for future product directions.
• A wish-list of features requested by your customers.