Technical Due Diligence
Technical Due Diligence Services
Fact-based risk assessment, delivered in 4 weeks or less. A technical due diligence assessment from Sphere gives you a clear, unbiased picture of the target’s code quality, architecture, infrastructure, security, and AI readiness – along with what it will cost to operate, scale, or integrate post-deal.
What Is Technical Due Diligence?
Technical due diligence is a deep review of a company’s technology before a deal closes. It covers the codebase, system architecture, infrastructure, security, data systems, and the engineering team behind it all. The goal is simple: give the buyer an honest, fact-based picture of the target’s technology. What’s solid. What’s fragile. What will cost money after close. And whether the tech can actually support the growth plan behind the deal.
It’s typically commissioned by PE firms, corporate acquirers, and venture investors — anyone making a significant capital decision where technology is core to the value.
Why Technical Due Diligence Matters Before a Deal
What a Technical Due Diligence Assessment Covers
Every engagement is scoped to the deal. These are the core assessment areas where Sphere helps companies: code quality and technical debt, architecture and scalability, infrastructure and DevOps, security and compliance, AI/ML and data systems, and the team, process, and product maturity behind the product.
1. Code Quality & Technical Debt
The full picture of what the codebase will cost to maintain and what it will cost to fix. This assessment covers coding standards, test coverage, documentation quality, dependency health, and error handling. Technical debt is quantified in hours and dollars – not vague risk ratings.
2. Architecture & Scalability
Whether the system can support post-acquisition growth – or will break under it. The review covers software architecture patterns, module dependencies, data flow, and integration points. Scalability is tested against projected load: resource utilization, database performance, caching strategies, and horizontal scaling readiness.
3. Infrastructure & DevOps
The operational backbone: how reliable it is, how much it costs, and how hard it will be to migrate or merge. This covers CI/CD pipelines, deployment automation, monitoring and alerting, Infrastructure as Code practices, environment parity, and disaster recovery. The output is a realistic cost-of-ownership model for the infrastructure post-deal.
4. Security & Compliance
The target’s vulnerability surface and how it measures against the compliance frameworks that matter to your deal – SOC 2, GDPR, HIPAA, PCI-DSS. The assessment covers authentication, encryption, input validation, penetration testing results, and known attack vectors. Each finding is classified by severity with a remediation roadmap and cost.
5. AI, ML & Data Systems
For targets with AI/ML components, the assessment evaluates model quality, training pipelines, data governance, labeling processes, model versioning, and monitoring infrastructure. The question is not just ‘does it work’ but ‘can it scale, evolve, and defend its position.
5. Team, Process & Product Maturity
Whether the people and processes behind the product can deliver what the deal thesis requires. This covers engineering team structure, skill distribution, key-person dependencies, agile maturity, release cadence, and the gap between current product state and the stated roadmap. Usability and accessibility (ADA/WCAG) are evaluated where relevant. The answer: can this team execute post-close, or does the acquirer need to rebuild?
How a Tech Due Diligence Engagement Works
Due diligence is time-sensitive and confidential. Every Sphere engagement operates under NDA, with access controls appropriate to the deal stage. Most assessments complete in 4 weeks or less.
Week 1 – Scope and objectives
The engagement starts with your deal team: investment thesis, key risk areas, target profile, and deliverable format. Available documentation is reviewed. Assessment parameters are locked.
Week 1–2 – Focus areas defined
Based on the deal profile, assessment areas are prioritized: code, architecture, infrastructure, security, AI/ML, team, product – or all of the above. Scope is tailored to the target’s complexity and stage.
Week 2–3 – Hands-on assessment
The technical review runs: codebase analysis, infrastructure evaluation, security testing, architecture stress-testing, and team interviews. All work is performed under NDA with strict data handling protocols.
Week 3–4 – Report delivery
Findings are delivered in an audience-tailored report organized by risk severity. Each issue includes business impact, remediation effort, cost estimate, and recommended priority. The report is written for your deal team, board, or investment committee – not for engineers.
Post-close – 100-day plan and execution support
A structured integration plan is delivered alongside the report. Key specialists are reserved for post-acquisition execution – the same team that assessed the target helps remediate findings, with minimal onboarding.
Who Needs a Tech Due Diligence
If technology is part of the value you’re acquiring, funding, or betting on — you need an independent technical assessment before you commit capital.
Why Companies Choose Sphere for Technology Due Diligence
Sphere has delivered technical due diligence consulting for SaaS acquisitions, fintech platforms, IoT companies, and AI-driven products across the US, EU, and Middle East. Here is what clients value most.
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