Due Diligence For Technology-Based Targets
An independent, bespoke assessment of a target company’s technology and / or IT operations on behalf of a private equity investor with a particular focus on matters that may affect valuation, post-deal performance and operational improvement.
Few companies operate successfully in the modern business world without a significant dependence on their technology or IT operations. Given the ubiquity and impact of such operations, it is almost always the case that they make a material contribution to business value. It is therefore essential that an investor understands the merits or otherwise, and the potential, of the target company’s technology or digital landscape before committing to the deal.
Digital Asset Ventures understands the transaction landscape, what investors are looking for in due diligence and how to report this. We advise transactions across all industry sectors and we have the ability to augment our standard due diligence services with a deeper analysis of key areas of interest such as cyber security, (software) code quality and digital maturity assessment as required. We can also provide additional insight into areas of commercial importance such as business plan achievability, the competitor environment, buyer behaviour, and potential disruptive technologies.
Our process allows the investor to fully understand the merits or otherwise of the target company's technology or IT operations, and the potential for value enhancement, before it is committed to an investment. As a result, the investor gains commercially-focused, pragmatic insight from a relevant expert into:
The major strengths and weaknesses of the technology and / or IT operations in the context of the business plan
The implications of any material risks both for the deal and for the investee company post-completion
What needs to be done to mitigate any risks and weaknesses
The relative priorities and indicative costs for mitigating any risks and weaknesses
What opportunities exist to enhance value through improved deployment of technology