Technical Due Diligence - Working with investors

Our technical due diligence team are experts in General Data Protection Regulation, Software Engineering, Information Security, Quality Assurance and Agile Application Delivery and we use our own in-house methodology for executing technical due diligence and assessing delivery team health.

This methodology is based on our many years' experience of project management and operational and technical due diligence assignments working in the digital and many other sectors including engagements with Apple, Ebay, Sony, Department of Work and Pensions, the National Health Service (NHS) and startup businesses.

We are therefore well equipped to accurately assess and determine the real value of software whilst understanding the ongoing cost to develop the software inline with your business model.

To learn more about how we can work with you as an investor through a technical due diligence engagement, please contact us.

Technical Due Diligence - Expertise

Technical due diligence is the essential process of reviewing software IP to:

  • Understand how simple the IP Is to technically maintain - software that is complex to maintain and teams that aren’t positioned well to maintain software will lead to hidden costs, delayed product releases and missed revenue targets
  • Determine whether the IP will scale well when your client numbers increase - Software that does not scale well, will lead to unhappy clients, poor client retention and reputational damage
  • Identify the software’s dependencies - Does the company actually own the IP? Does the IP rely on risky open source or third party proprietary components
  • Understand whether the software presents a security, and therefore potential reputational risk
  • Software that is poorly hosted, has infrastructure or coding vulnerabilities exposes you and your investment to serious reputational damage
  • Determine if the software is compliant with General Data Protection Regulation (GDPR) - If the IP is handling personal data, and it does not embody GDPR, you are at risk of large fines and reputational damage
  • Identify if the quality of the software is good - It is essential software defect logs are reviewed, and good practice is in place to manage quality through digital product development. Lack of good quality assurance practice and management of technical debt will lead to poor customer retention, reputational damage, more costly and protracted delivery cycles. It is essential software quality is taken seriously as this will lead to growth inline with your strategy and associated, increased revenues.
  • Unearth technical debt - Technical debt is a concept in software development that reflects the implied cost of additional rework caused by choosing an easy solution now instead of using a better approach that would take longer. The trade off for early delivery can be serious and will likely affect software quality, maintainability, security, scalability or extensibility. Technical debt can be costly to remedy, so good software architecture and development team process are of critical importance to ensure your financial and product goals as an investor
  • Check Team Health - We will independently assess the capability and mix of the development team(s) working on the software IP to ensure they are best placed to continue to extend the software moving forward. This is essential so that you can address any development team challenges immediately and with insight and help grow your investee’s team to consistently deliver quality product on time

For Technology Investors

If software IP is at the core of your next investment, don’t leave things to chance. 

Through execution of deep technical due diligence prior to closure of your investment, you will:

  • Validate the IP is what the investee has stated it is in terms of completeness and quality 

  • Ensure the most favourable financial terms for you as an investor

  • Eliminate risk of costly, hidden surprises that may materialise post investment as a result of poor technology choices and team process

  • Empower your investee’s management team for success

  • Assure return on your investment

Please contact us to find out more.

Protect your investment now - contact us