Due Diligence: Technical Due Diligence

Mar 23

THIS IS THE FREE, REDACTED VERSION OF THE TASKS IN THE M&A REFERENCE MODEL  AND IT IS LICENSED UNDER Creative Commons Attribution-NonCommercial-ShareAlike 4.0 International THE FULL SET OF DATA HAS TO BE LICENSED COMMERCIALLY.  HERE is a full model example for one task.

The task has the following goal(s):

Technical resource: analyzed

Product of the target: analyzed

Draft technical integration plan: prepared

The task has the following objectives:

Information asymmetry: minimized

Integration success: maximized

Short description of task Technical Due Diligence:

Technical due diligence examines the products and services as well as the technical resources of a company. These can be all technical resources such as machines, production facilities, or technical intellectual property.

The task uses the following business object types:

Quality risk of the target company, Technology Risk, Technical resource, Target product feedback, Target product functionality, Product bundle of the target, Product roadmap of the target, Product pipeline of the target, Product of the target, Intellectual property,

Tool/Service: Sema Health Check

The tool automates the following actions

Evaluation of the architecture: fully automated.
Code quality evaluation: fully automated.
Detection of open source components: fully automated.
Evaluation of open source components: not automated.
Detection of third party software: fully automated.
Evaluation of third party software: fully automated.
Detect AI-generated code: fully automated.
Evaluate AI-generated code: partially automated.
Detection of security vulnerabilities in applications: fully automated.
Detection of security vulnerabilities in servers: fully automated.
Evaluation of cybersecurity stance: partially automated.
Data privacy evaluation: not automated.
Review development org, process, capabilities: partially automated.
Review compliance with export law and other laws: not automated.
Analyze post-merger integration and scalability: partially automated.
Create technical integration plan: partially automated.
Determine technical risks: partially automated.

Get a free demoe of sema

Questions to be used during the execution of the task

The task is executed with the following questions, among others:

Which technology is used in manufacturing?
Which technology is used to provide services?
Which technology is used in the products?
Which technology is used for collaboration and communication between employees?
How widespread is the product or solution or service among competitors?
How mature is the service?
What are the implementation costs of the solution?
What are the operational costs of the solution?
What are the support costs for the product or solution?
How complex is it to operate and maintain the product or solution?
Was there a plan to withdraw any of the products or solutions from the market?
How do you measure and control the quality of your products?
How many installations of different versions of your products or solutions are there?
What is the forecast market for all technologies used?
Are there any technologies where you are early to market?
Which technologies are used by suppliers in your solutions?
Are critical technologies protected by intellectual property rights (e.g. patents)?
Are intellectual property rights (e.g. patents) for critical technologies about to expire?

Has the target identified and monitored technology risks?

THIS IS THE FREE; REDACTED VERSION OF THE TASK IN THE M&A REFERENCE MODEL: THE FULL SET OF DATA HAS TO BE LICENSED

Karl Popp www.drkarlpopp.com