Technical Due Diligence: Why Acquiring Firms Need It

Technical due diligence can be an essential component of the technology company investment cycle, whether you are a Private Equity firm, investment bank, or acquiring company.

Most acquiring firms have a set of investment objectives in mind when acquiring a new technology company. Performing technical due diligence to evaluate the product, architecture, processes, and organization helps ensure that those objectives are met prior to closing the investment.

Why not just do a basic technical due diligence yourself, particularly if you are a software company acquiring another software company? Firstly, competitive intelligence may be at stake and a third party with a signed non-disclosure agreement can help preserve that integrity. Secondly, using a third party with team members of varying expertise, an objective view, and the ability to compare hundreds of companies to the target adds further value to the diligence process.

A refined technical due diligence process is quick, efficient, and answers the investment questions in easy-to-understand terms with sufficient detail.

MSC R&D supports the investor community through specialist technical due diligence to:

  • De-risk investments
  • Increase potential for higher yield returns
  • Enhance understanding of technology and benchmark against global state of the art
  • Provide context for market share predictions
  • Future proof the technology and validate exit strategy
  • Identify added value from technology bridges into complementary tech-enabled markets
  • Assess the technical capability of the company’s team to deliver against forecast

Our services are flexible, to suit your specific needs, and can be delivered in degrees of complexity both pre-investment and post-investment: