Last week’s post looked at what a typical technology due diligence assessment involves. This week’s post describes what happens once the process is complete:

At the end of the technology due diligence (TDD) assessment, results are collated into a final report.

“Conclusions and recommendations must be formulated, and full details of methodology, sources, and references documented”

“Technology due diligence: the need for and benefits of technology assessment in connection with investment in high-tech companies”
Carol R. Goforth, Ronald R. Goforth
Rutgers Computer & Technology Law Journal, Summer 2001

Far beyond simply providing an overall recommendation on whether or not to go ahead with the investment, merger or acquisition, the report will contain a detailed breakdown of technical findings and, most importantly, their implications for the future performance of the proposition. This is one of the key skills of any TDD assessor: an ability to translate technical findings into “dollars and cents” implications for the value of the deal.

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Technology due diligence (TDD) typically involves subject area experts assessing the functionality and resilience of some or all of the technology employed and/or marketed by the subject company.

TDD can be broken down into the assessment of two distinct areas: the company’s technology infrastructure (IT systems, manufacturing equipment etc) and any unique technology that it has created.

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Whereas financial and legal due diligence are well accepted stages of the investment process, technology due diligence is a relatively new concept.

There’s some of explanation of it on the Remarkable Innovation technology due diligence pages, but over the next few weeks we’ll post a series of articles here that cover the topic in more detail. The final post in the series will include a collection of links to other writing on the subject.

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Welcome to the Remarkable Innovation technology due diligence blog.

In 2004, Paris-based venture capitalist Marc Goldberg wrote an inspirational blog post which discussed “the idea of open-sourcing the due-diligence process“. That’s what this blog will try to achieve: an open discussion of technology due diligence best practices.

It is intended as a point-of-reference for investors, technology experts and other interested parties to learn from each other and exchange ideas. Please get in touch if you would like to contribute!