Transaction diligence
Tech and cyber due diligence
Technology diligence, written in the language of the deal.
Duration
Three to six weeks, depending on deal size and access
Fee shape
Fixed fee, or scoped to the deal
Suits
Mid-market acquisitions, for the acquiring board and its advisers
Typical deal size
£10m to £100m enterprise value
When this engagement applies
Buy-side technology diligence is a known shape of work. The risk is that the report becomes a long technical inventory the board does not engage with, or a short red-flag list with no underlying evidence. Either failure mode is common. Both can be avoided by writing the report for the audience that has to act on it.
The trigger is usually a deal moving into exclusivity, with two to six weeks of diligence time and a specific set of questions the board wants answered.
What I assess
A properly-scoped review of the target's technology and cyber position, focused on the questions the board needs answered:
- Is the technology fit for the business as it is today
- What is the technology investment needed to support the business plan for the combined business
- What are the cyber, data, and technology risks that could affect the deal
- Who owns the technology, and whether any third-party or open-source components carry licensing or change-of-control risk
The work is done remotely where possible, with a short on-site visit at the target if the deal structure allows. The output is a 25 to 50 page report, written for directors and the deal team rather than for engineers. A separate technical annex is available for the integration team after close.
What you get
- A scoped diligence report covering technology fit, investment requirements, IP ownership, and cyber, data and technology risk
- A red-flag summary for the executive leading the deal
- A 100-day technology plan for the post-close team
- A call to walk the board through the findings
- Optional support during SPA negotiation on technology-related warranties and disclosures
Delivery
Week one: scoping with the deal team, data-room access, initial document review.
Weeks two and three: management interviews, target-side data review, draft findings.
Weeks four to six: draft report, validation calls, final report and red-flag summary. Timing flexes with deal pace.
Fees and duration
Fixed fee, or scoped to the deal, agreed at the start. Three to six weeks elapsed.