Technology Due Diligence Scorecard
Score a technology company's engineering health for due diligence. Assess code quality, architecture, security, team depth, and scalability to identify pre-acquisition risks.
- Free Scorecard
- PE/VC Due Diligence
- 6 Dimensions
Technology Due Diligence Scorecard
Frequently asked questions
What is technology due diligence?
Technology due diligence is a pre-acquisition assessment of a company's technology stack, engineering team, architecture, security, and technical debt. It identifies risks that could affect the investment thesis or post-acquisition integration.
Who typically conducts technology due diligence?
PE/VC firms hire independent technical advisors or fractional CTOs to conduct due diligence. The assessment typically takes 1-3 weeks and includes code review, architecture assessment, team interviews, and security evaluation.
What are the biggest red flags in tech due diligence?
Single-person dependencies on core systems, no automated testing, unpatched security vulnerabilities, unclear data governance, and tech debt exceeding 30% of engineering time. Any of these can materially impact valuation.
How does tech debt affect acquisition valuation?
Significant tech debt typically reduces valuation by 10-25% as acquirers price in the remediation cost. Critical tech debt (requiring a rewrite) can reduce valuation by 30-50% or kill the deal entirely.
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