March 2021

Are You Ready for Technical Due Diligence?

Maximize the Value of Your Software

In the world of software M&A the idea of conducting Technical Due Diligence before purchasing or investing in a software company is a critical and mandatory step.

If you are building a SaaS company with the idea of either raising external capital to continue growing or eventually being acquired by a larger competitor, you need to always keep in mind that the internals of how your software was built will be an important component of any future investor’s due diligence process.

Understanding what these potential investors or buyers are looking for is important; however, good architecture and software design practices will also pay big dividends in the internal operations of any company.

This is a sizable double benefit for something that can be built into the software development process from the get go.

Below you will find some interesting resources discussing the current thinking and best practices around the area of Technical Due Diligence.

Here is our monthly curated list of thought-provoking books, blogs, and videos about emerging trends in the technology world:

Tech Edt.

Ultimate Guide on Technical Due Diligence for Startups

By Smarty

In this article, technical due diligence is seen as an indispensable test on the way to building a successful and fast-growing product.

Technical due diligence is a required process by investors when auditing a tech startup. It allows them to not only know the quality of the code but also assess the entire development process.

Akf Consulting

Technical Due Diligence Checklist

By AKF Partners

This is AKF Partners’ most popular article. This technical due diligence checklist is continuously improved and kept up to date as things develop.

Some of the terminology refers to other AKF models. A quick look at their AKF Scale Cube will help orient you for the scalability questions.

LinkedIn Technical Due Diligence

Due Diligence: Assessing Before the Acquisition

By Ramkumar Chidambaram

Acquiring a technology company requires special attention. Ramkumar argues that what you don’t know will almost certainly hurt you. Technical due diligence has now become part of the acquisition ritual.

A typical letter of intent, or agreement of terms, includes a contingency clause that permits the buying company to perform technical due diligence to examine the software assets being purchased.

MangoChango’s ability to deliver unquestionable value to its clients is highly dependent on keeping abreast of new technologies and trends.

Utmost productivity (software development, testing, and maintainability) and quality is one of the ways how we help our clients’ meet not only their ever changing business needs but also the demands of any current or future technical due diligence.

MangoChango’s engineers are experts in a wide variety of technologies, frameworks, tools, and languages, with an emphasis on continuous learning as new thinking, tools, and techniques come to market.

Check here for more information and to explore our technology assessment and maturity framework.