For private equity and corporate acquirers, identifying and assessing technology that can affect capital allocation and growth potential is critical during the diligence process. Technology risks can consume significant post deal investment or impair long term revenue gains.
On the buy side of a deal, this information can validate the asking price for an acquisition, or open one or more avenues for negotiating a better price (eg weak cyber defences that need investment). On the sell side, this process ensures that tech can be presented in the strongest possible light (eg a scalable and secure core platform). In fact, a sub-standard technology due diligence effort can increase the risks, reducing the value of any transaction.
Quality technology due diligence doesn’t happen by accident. Our team has both the operational and technical skills, combined with real-world business experience and tools to identify risks and quantify remediation needs. We can also highlight investment opportunities and target revenue or margin growth areas.
Could you benefit from technology due diligence?
Technology due diligence is valuable when technology and data are a source of value creation and it should be considered alongside the following factors: