Technology Due Diligence – Effective through Targeted Scoping and a Lean Approach

The Technology Due Diligence process spans two to six weeks, depending on complexity and urgency. Our experts work effectively to combine our lean approach with the necessary depth. During this time, our due diligence specialists collect and consolidate all the information provided, conduct confidential expert interviews and support other work streams as necessary.

1. Kick-Off

   Before any Tech DD begins, it is usually preceded by getting acquainted with all those involved in order to lay the foundation for a trusting cooperation. During this time, the Non-Disclosure Agreement (NDA) is signed, an Information Memorandum (IM) is provided and the scope of the project is determined.
   The official start of a due diligence takes place in a kick-off meeting. The target’s contact persons receive clarification on the process and a timeline is established. Understanding the needs of the investor and the target is of utmost importance.

2. Inspection of Documents

   The first stage of a due diligence takes place virtually. Our experts examine the documents provided in virtual data rooms. The principle is: the more the better. If our experts find comprehensive information, they can perform in-depth analyses. Depending on the maturity level of the target, varying density of documentation is expected and evaluated.

3. Management and Expert Interviews

   An important element of a Technology Due Diligence is a personal impression gained in management and expert interviews. These can be held either on site at the respective target or remotely via video conference or telephone. On-site appointments usually present an ideal opportunity to test the technical elements of the service or product. Following the interviews, our experts offer the investor an update call for an initial assessment.

4. Result

   The final result of our Technology Due Diligence is a detailed assessment and a management summary of the IT situation in the target company. Depending on the focus, the results can be prepared in the form of a red flag report, an IT audit or an expert opinion. In addition to a description of the current situation, the report includes a risk assessment and an evaluation of future viability as well as derived recommendations and measures to support the target business case. This provides an initial blueprint for post-acquisition integration.

5. Further Steps

   Following a presentation of the report i. a. in a management meeting and a successful investment, wdp offers various support for investor and target:
   Our transaction team prepares a 100-Day Action Plan based on the recommendations and risks of the Technology Due Diligence. Investor and target can use this plan e.g. to close any security gaps, professionalize processes or prepare for successful integration.
   In further active cooperation wdp can develop a digital strategy, provide support in organizational development or enable data-driven analyses of the business model.