Technical Due Diligence

Comprehensive overview of the tech infrastructure, processes and team, revealing value-creating potential and hidden costs.

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Why you need a tech partner for
a smooth M&A process

When acquiring or merging digitally-led companies or companies with complex tech infrastructure, buyers want to have an unbiased overview of what they are buying and how much it will cost them to operate, scale, or combine the business post-merger or acquisition. Technology due diligence is a critical part of the M&A due diligence process which includes the analysis of the technology products, architecture, team, and crucial development processes of an organization.

Valuing the investment and having an educated view of what it will take to transform the business before merging it with another or scaling it in the future is a key element of any M&A process. The Sphere team can help you navigate through the tech due diligence process smoothly.

We make Technical Due Diligence Seamless

Reduce Operating Cost

Sphere’s TDD mitigates the need to hire and keep a diverse range of technology experts in-house and reduces fund operating costs.
Mitigate Conflict Of Interest

Our opinion is not biased. If you are delegating due diligence to a portfolio company or if you are a company that has an in-house team, it is likely that there will be a conflict of interest that will need to be managed.
Advanced IT Expertise

Lack of software engineering background and IT experience during internal assessment stages might cause deviations in the estimates. We will give you an unbiased view of the resourcing required to deliver on the product roadmap and deploy an infrastructure.
Straightforward Action Plan

We will provide you with clear recommendations on all mitigation actions required, and advise you on dependencies and recommended priorities.

Why Sphere?

Team of experts available with minimal lead time

As part of a Technical Due Diligence (TDD) engagement, we assemble a multidisciplinary team, including software architects, engineers, AI, ML, and data specialists, cybersecurity experts, and ERP professionals.
Our reports are written for stakeholders without a technical background

We make our findings accessible for deal team members without a technical background. For each risk area you get mitigation actions and recommended priorities to help you value the investment more accurately.
Post-acquisition support

Our team provides a 100-day plan and long-term recommendations, and reserves key specialists for post-acquisition expertise with little to no lead time.
Addressing and preventing cyber security threats

We provide the cybersecurity assessment of the existing cybersecurity program to remediate threats, evaluate the compatibility and resiliency of IT infrastructure, and the vulnerability and attack surface of the applications.

Due Diligence Consultancy
tailored for your project and needs

  • - PE funds looking to make an anchor investment
  • - Companies looking to acquire complementary businesses
  • - PE funds working on roll-ups into an existing/established portfolio
  • - Start-ups/scale-ups preparing for an exit
  • - VC/ PE funds looking to sell portfolio companies
WHAT WE DO FOR YOU

We perform technical due diligence on the target to help you assess the tech environment and risks related to the acquisition.

When it comes to mergers, requirements for technical due diligence are not limited to the assessment of the target, they also include a deep understanding of the acquiring business that will go through the merger.

Planning for exit is a critical part of the process. We will help you get an unbiased view of what can come up during the technical due diligence process, and suggest actions to increase the chances of a successful transaction at a more attractive valuation.
WHAT YOU GET

Comprehensive report summarizing our review of the tech stack, roadmap, views on key talent and talent retention, risk assessment, and post-acquisition actions to mitigate risks.

Comprehensive report on the target, as well as integration opportunities and risks.

Comprehensive report on the target, as well as integration opportunities and risks.
KEY OBJECTIVE

Smooth infrastructure merger and eliminating potential redundancies

Smooth infrastructure merger and eliminating potential redundancies

Infrastructure delineation for a successful separation

Meet our Tech Due Diligence Leaders

Our proven track record and unwavering commitment to client satisfaction position us as trusted partners throughout the M&A tech due diligence lifecycle. Our core team comprises technology and business experts who are skilled at identifying risks and providing remediation strategies.

Igor Meltser

Vice President Engineering & Technology

Mario Schwarts

Managing Director Data & AI Practice

Anton Shemerey

Director of Technology

Dmytro Shein

Solutions Architect

Oleg Kukareka

Solutions Architect

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Technical Due Diligence FAQ

What is Technical Due Diligence (TDD)?

Technical Due Diligence (TDD) stands as a comprehensive examination of the technical infrastructure and operational capabilities of a product, software or organization prior to the onset of a merger or acquisition (M&A). Typically initiated by the acquiring entity or investor, Technical Due Diligence services dives into all aspects including products, software, strategic roadmaps, and other pivotal elements influencing the technical robustness of the company. In essence, Technical Due Diligence services provides a panoramic view of the actual worth of the company and its capacity to deliver on pre-M&A commitments.

Private equity entities possess a multiple options to enhance a company’s operations. Foremost among these is an invariably the technological front.

The companies can aim to increase the value by 15% to 20% through swift changes. Over 90% of companies can promptly enhance their overall functionality, profitability, and consequently, their valuation, simply by adeptly leveraging appropriate platforms and integrations across the organization.

During M&A transactions, this insight assumes the big importance for two compelling reasons. Firstly, comprehending the platforms, integrations, and technological solutions already in use by the business is crucial as they significantly impact its overall value and functionality. Secondly, if the business is not operating at optimal efficiency, prioritizing technological upgrades post-transaction could be a pivotal initial move.

In recent years, technology has emerged as more central than ever to organizational performance and competitive differentiation, transcending far beyond just tech-centric companies to embrace every industry. Most companies now rely on technology to achieve peak performance within their respective sectors. Consequently, conducting thorough technology due diligence has become a crucial step for navigating mergers, acquisitions, and beyond, both within and beyond the tech sphere.

Technical due diligence serves to spotlight technology blind spots that organizations may skip. During the M&A process, identifying and fixing these gaps is crucial to bring the technology infrastructure up to par. For instance, many organizations operate with outdated applications that are no longer supported, potentially exposing them to vulnerabilities. Outdated infrastructures may also struggle to cope with the high load data flow, impeding operational efficiency.

At Sphere, a company specialised in technical due diligence services, we recognize the dynamic nature of M&A transactions and strive to expedite timelines for accelerated value realization. Leveraging cutting-edge technology, we drive investment growth and enhance valuations. Our team comprises seasoned technologists and business practitioners adept at fostering top-line growth and bottom-line efficiency.

As a goal-oriented, client-centric consultancy, we pride ourselves on delivering tailored solutions in real-time. Our track record of success, coupled with our unwavering commitment to client satisfaction, positions us as trusted partners throughout the M&A lifecycle. Contact Sphere Partners, a technical due diligence company today to unlock the full potential of your transactions and realize your highest ambitions.