Our proven technology due diligence process is composed of 5 major steps, executed in a timely fashion, so that we can limit impact on the target company.
During the preparation phase, our goal is twofold. In the first instance, we want to clearly understand the requirements of our clients. These requirements will differ depending on the type of the investor, the stage of the company’s life cycle, and the particular goals of the investor. For the second part, our goal is to become acquainted with the target company and to be introduced to the technology team. During this phase, an assessment questionnaire is shared with the target company, giving them a structure to use for preparing for upcoming meetings and interviews. The questionnaire is customized to suit the requirements of our client.
The interview phase comprises information gathering activities. It consists of onsite interviews with all key technical personnel. We schedule Interviews to ensure that there is no interference with the operational requirements of the business. The interview process is supplemented with gathering of additional documentation, code samples if applicable, access to monitoring and analytics systems, and other relevant data sources. We may also require access to the floor where developers and testers are seated, and possibly to datacenters and other subsidiaries.
Once the information gathering phase is complete and we have performed a high-level analysis of the information, an initial debriefing session is held with our clients. During the debriefing, we provide a summary of the most important risk factors we have identified and we present a headline-type overview of the target company’s technology department. The debriefing session provides our customers with the the opportunity to request further investigation of any aspect of the findings.
The delivery phase follows after we received feedback from the initial debriefing. During the delivery phase, the final report is drawn up. The final report includes an executive summary, a full risk matrix and appendices with information to support the conclusions drawn in the report. Details of the findings within the four main areas of investigation (team, process, software and infrastructure) are included as separate sections in the report. Each of these chapters present an overview of the relevant section expressed in terms that are accessible to people from a non-technical background. The report includes a full index of technical terms and abbreviations used in the report. The report is supplemented with a summary in presentation (powerpoint) format.
The final phase of closure involves discussing the conclusions and risk matrix contained in the report with our customer. During this phase, the due diligence team will offer the opportunity to do follow up site visits. In our experience, software driven companies rapidly go through life cycle changes - and it is necessary to safeguard the investment by ensuring that technical recommendations are implemented as agreed on. The closure phase sets out a roadmap for future interactions with the target’s technology team, and delivers all the information the client requires to reduce the risk of technology-related problems arising in the future.