The problem with typical IT due diligence

All too often, it's all too superficial

When acquiring a company or making a strategic investment in one, you need rigorous, cost-effective IT due diligence to tell you how the company’s software will affect its ability to grow and thrive.

 

But this examination of the IT architecture and software typically just scratches the surface, including little more than interviews with the target company’s IT leaders, review of documentation, and perhaps a demo of the software.

 

The result? Investors buy a “black box” of software, and only later find out that it can’t support strategic goals for efficient execution or scalable growth.

Why you need to dig deeper

Investment risks & opportunities are hidden in the source code

When you invest in a company, you invest in the software that runs it.

 

And our experts know that conducting interviews and reviewing documentation isn’t enough — to identify the hidden IT-related risks and opportunities for your investment, you have to understand what’s going on in the source code itself.

 

That’s why we dig deep into the code to assess inherent software quality, expose dependencies on third-party components, identify security and privacy issues, and evaluate future scalability.

Invest with confidence

Findings with clear action items and dollar values assigned

We deliver comprehensive IT due diligence reports to help you answer questions like:

 

  • Does the target company’s software support your future growth plans?
    Can it scale to more users, adapt to new platforms, or integrate with other solutions?
  • Are there IP-related issues hiding in the source code?
    Liberal use of open source software or dependence on third-party solutions may have legal implications.
  • What’s the value of the software portfolio and what future costs must be factored in?
    How well is it engineered? How much technical debt do you face?
  • How strong is the IT team of the target company?
    How productive is it compared to industry benchmarks? What is the capacity for innovation?

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Why SIG?

Independent, impartial insight delivered within 2-3 weeks

Our consultants deliver fast and focused IT due diligence that fits within the tight two- to three-week timelines of PE firms and strategic buyers.

 

  • Findings are always based on measurements against the industry’s largest benchmark, which contains more than 10 billion lines of code.
  • SIG performs more than 100 cross-border IT due diligence projects annually with enterprise values of up to €1 billion, giving it the deep experience required during acquisitions.
  • SIG is experienced in cooperation with experts from other due diligence streams, including financial, legal, and commercial, preventing redundant efforts and resulting in more effective due diligence overall.
  • We deliver comprehensive due diligence reports that contain not only qualitative information, but also important quantitative components that highlight immediate areas for improvement.

The Team

Eddy Boorsma

Partner SIG Transaction Services

Eddy is responsible for all commercial and marketing activities. With a background in Business Administration he started in 2007 to join a small and ambitious team at SIG after careers at large Dutch and US IT and Telecom firms. Since 2014 Eddy supports (strategic) investors with the IT Due Diligence proposition.

Martin Boerman

Consultant SIG Transaction Services - Netherlands

Martin is concerned with both technical and managerial content in the delivery of IT Due Diligence engagements. With a background in Information Sciences, he joined SIG in 2014, and has since accumulated experience in both research and delivery. Martin is enthusiastic about making technical content accessible and useful to clients.

Freek Hoekstra

Consultant SIG Transaction Services - Nordics

Freek is responsible for the Due Diligence offering in the Nordics and is currently based in Copenhagen. Using his broad background in Chemistry, IT and Business and Telecom, Freek aims to support investors with the necessary insight to confidently invest in the digital age.

Liam Blythe

Consultant SIG Transaction Services - UK

Liam is responsible for the Due Diligence offering in the UK. Liam draws on broad yet comprehensive knowledge and experience of real-world IT that allows him to provide investors with the insights they need.