Overview
Almost every founder of a tech company believes their company is incredibly valuable. Technology due diligence validates for the investor how the company has assessed the value of the technology to support a potential deal or investment, by verifying all information, as well as understanding both the risks and potential opportunities.
The underlying technology is a key driver. For example, there is typically a need to understand the challenges of scaling the technology to new markets, the extent that the actual market facing technology is developed and deployed, as well as the importance of the leadership and development team in place. Understanding the investment that may be needed in security and resilience, as well as ownership of IP is also critical.
Approach
There is an exhaustive list of possible technology due diligence questions to be addressed, however the process typically takes one week, and involves understanding the drivers of a proposed investment, meeting with management, and establishing an evidence-based assessment. Additional questions are required for industry-specific deals, while fewer questions may be needed for tech start ups or smaller companies.
We undertake a ‘Red Flag’ review of your technology to understand what might cause a concern to a buyer or investor, such as the lack of a software product roadmap. Prioritise and implement improvements that will maintain and enhance future deal value. As well as key commercial decisions, it is important to ensure other areas of housekeeping are not overlooked such as the ownership of your IP, your personal and corporate tax affairs and the company shareholder structure.
Our approach focuses on:
- Highlighting red flags and opportunities early;
- Phased due diligence approach to reduce costs incurred;
- Quantitative and qualitative reports; and
- Remediation and implementation support.
IT and Systems:
- Leadership
- Tech talent and organisation
- Alignment to operations
- Project and programme health
- Front-and-back-office applications
- Infrastructure and automation
- Third party risk / performance
- Data management and enablement
- Salary and spend benchmarking
Software Product:
- Strategy and roadmap
- Code quality and application security
- Architecture and infrastructure
- Competitive functionality
- Onboarding and customer support / experience
- Development processes
Cyber:
- Processes, tools, and controls
- Cyber security governance
- Regulatory alignment
- Penetration testing
Data Privacy:
- Processes and controls
- Open-source intelligence gathering (OSINT)
- Regulatory alignment
- Exposure to fines and regulatory censure
Following successful due diligence, we can then help you by:
- Post-merger integrations: We work closely with you to identify value creation opportunities across the operations (including people and culture, data, technology, and operations). We quantify value creation opportunities, develop implementation plans and provide ‘hands-on’ support.
- Separation and divestiture: We help you to design and establish the separation plan, governance structure, and work with you to prepare an operational handbook and the day one solutions (including transitional services), as well as the full standalone model and related separation cost impact.
Why choose Green Dolphin
- Informed decisions: We've done this before, and you're in safe hands. We empower buyers with the evidenced based insights needed. We've partnered with business leaders and leading private equity firms to design, plan and successfully execute M&A activity.
- Credibility: We bring a senior led approach and deep subject matter expertise in key areas you will need during the change such as strategy and operating model, design, and architecture, change management, technology and data, cyber and operational resilience.
- Value creation: We identify untapped value and develop execution plans for realisation, ensuring you maximise your returns.
