Why tech due diligence is non-negociable?
July 1, 2025
What Tech DD Actually Covers
- Code Quality & Maintainability
- Static analysis for code smells, complexity hotspots, and test coverage gaps.
- Ensures your engineering team can iterate post-close without a mountain of refactoring.
- Security Posture
- Vulnerability scanning, dependency checks, and secret-leak detection.
- Validates that your platform resists real-world attack vectors and meets compliance needs.
- Architecture Resilience
- Evaluation of scalability patterns: microservices boundaries, API design, data-partition strategies.
- Highlights integration risk and future growth constraints.
- Operational Observability
- Review of logging, metrics, and alerting frameworks.
- Determines whether incidents will be detected and resolved quickly once live workloads ramp up.
- Infrastructure & DevOps Maturity
- IaaS/PaaS configuration audits, IaC practices, CI/CD pipeline health checks.
- Tests whether deployments are reproducible, auditable, and secure.
The Seller’s Advantage
A proactive Tech DD:
- Builds Trust: Buyers see that you own your technical narrative.
- Speeds Negotiations: No surprise findings means fewer term‐sheet renegotiations.
- Unlocks Value: A clear, mature tech story can justify higher multiples.
Implementing a Lean Tech DD Sprint
- Baseline Scan (Day 1–2): Run automated tools (e.g., static analyzers, vulnerability scanners) across repos.
- Triage & Scoping (Day 3): Score each finding by impact and likelihood; map to remediation backlog.
- Deep Dives (Day 4–7): Focus manual reviews on high-impact modules—core services, public APIs, auth flows.
- Synthesis & Reporting (Day 8–10): Compile findings into a buyer-grade report: prioritized risk matrix, architecture overview, remediation roadmap.
Tech DD isn’t an optional add-on; it’s the foundation of a transparent, efficient sell-side process. By embracing it early, sellers convert perceived risks into confidence signals, accelerating timelines and preserving valuation.
Ready to make Tech DD your competitive edge? contact us