Balancing speed and depth in tech due diligence

‍The Speed vs. Depth Dilemma

• All-in Deep Dive: Comprehensive but time-consuming; risks stalling the deal.
• Rapid Scan: Fast but surface-level; may overlook material risks.

A Structured Scoping Framework

1. Module Impact Scoring
   • Criteria: Business criticality, complexity, recent changes, exposure to external integrations.
   • Score Scale: 1 (low) to 5 (highest).
2. Risk Likelihood Assessment
   • Criteria: Code churn rate, known vulnerabilities, third-party dependencies.
   • Score Scale: 1 (unlikely) to 5 (very likely).
3. Effort Estimation
   • Criteria: Lines of code, number of services, test maturity.
   • Scale: Small (hours), Medium (1–2 days), Large (3+ days).

‍Time-Boxed Sprints

• High-Priority Modules: Allocate deep-dive sessions (2–4 hours per module).
• Medium-Priority Modules: Conduct rapid checks (30–60 minutes).
• Low-Priority Modules: Surface-level scans or defer entirely.

Best Practices for Execution

• Daily Stand-Ups: 15-minute sync to adjust focus based on emerging findings.
• Mid-Sprint Checkpoint: Re-score modules if new risks surface.
• Final Wrap-Up: Validate that all high-priority areas received sufficient coverage, then draft your report.

Balancing speed and depth isn’t guesswork—it’s a disciplined scoping exercise. By scoring modules on impact and likelihood, then time-boxing your reviews, you ensure critical areas get the scrutiny they deserve without stalling the deal.

Would you like to know more about how to deliver balanced, impactful Tech DD every time: get in touch

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