What is a technical due diligence?

Technical Due Diligence is a detailed assessment of the technical aspect of the company, including any technical products that it produces or is in the development process. The purpose is to find out whether the company is a healthy investment decision and prepare for mergers and acquisitions. This can be carried out by an external company with expertise in this area or internal teams with sufficient training to evaluate future investments fairly and accurately. This includes software systems, hardware and development technology, although it is only in its basic form. The Due Diligence team usually wants to determine whether these technologies are unique and valuable, as this could have an impact on the reliability of the investment and the fair price of the company and its technology. This work requires extensive research in the field and the ability to collect information about related products and services.

team responsible for technical du diLigence can explore topics such as efficiency, safety and usability. The company wants to make sure that acquisition or merger will bring something new to the table and expand its offers. This technology must also be interesting enough to attract attention; Shareholders may lose faith in a company that invests with an unclear purpose. Technical Due Diligence also involves actively testing technology and pushing it to a point where it is sound. Teams can also make sure that companies have their intellectual copyright rights to confirm that the right to production, license or adaptation of technology is really present.

teams can have access to a number of information, including technical documents, messages and data found in physical devices. Team members can require tourist facilities, interplayed workers and control documentation around research and development activities. They may also invite external consultants if a specific topic of interest beyond the extent of experience and practicee.

This process can take one to three weeks, depending on the type of technology, the amount of material and the level of cooperation between employees who deal with this technology. The Technical Team for Due Diligence will prepare a written report that provides information about their findings. He can offer recommendations based on what he knows. This information becomes part of a larger Due Diligence document and combines data on finance, organization and other matters and create a detailed view of the potential acquisition to see if it seems to be a good business.