IT Due Diligence - SIG | Getting software right for a healthier digital world IT Due Diligence - SIG | Getting software right for a healthier digital world
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Buying Software

IT Due Diligence

We dive deep into the code underlying digital assets to identify and quantify hidden investment risks and opportunities.

Dive a level deeper to invest confidently

Typical technology due diligence barely scratches the surface, including little more than interviews with the target company’s IT leaders, review of documentation, and a demo of the software. The result? Investors buy a “black box” of software, and only later find out that it can’t support their strategic goals.

Our experts know that conducting interviews and reviewing documentation isn’t enough. In order 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 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?

IT Due Diligence

Benefits

An IT Due Diligence engagement with SIG includes important qualitative and quantitative components to tell you how the company’s software will affect its ability to grow and thrive.

Technology risk profile

Identifies and evaluates the risks associated with the target company’s technology mix — not only the obvious main technologies in use, but also the many supporting technologies such as deployment scripts, test frameworks, third-party components, and front-end libraries.

Situational analysis

Clarifies future adaptability, scalability, and integration ability of the target company’s software, giving you a factual basis to understand the feasibility and likely costs of future growth.

Post-transaction roadmap

Uses our own calibrated financial estimation models for maintenance, repair, and continued development, allowing IT investment to be considered in the context of the overall business plan.

Rebuild effort estimation

Technical debt quantified in terms of both time and money, explaining in detail how many person-months of work would be required to develop the same IT assets from scratch by an average team of software developers.

Insight into other due diligence streams

Provides experts in other workstreams irreplaceable insights into everything from CAPEX and OPEX projections, to development team productivity, to analysis of the target company’s competitive technology landscape.

2-3 week turnaround

Our experts deliver fast, focused insight within the tight two- three-week timelines investors require.

Buying Software

Post-Acquisition Monitoring

We help you add greater value to the software assets in your portfolio and avoid risks that may require additional capital or extend the hold period.

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