Imagine you’re the CTO of a mid-sized company, planning a potential acquisition that could boost your business—provided the technology meets your standards. How do you make sure it’s the right fit? A technical due diligence platform may be what you need for crucial insights.
What if the Code Quality Isn’t Up to Par?
Picture your team enthusiastic about an innovative tech solution, only to find post-acquisition that the code is filled with inefficiencies and bugs. You can prevent this by running in-depth code analyses that go beyond surface checks.
A platform for technical due diligence might reveal issues like poor coding practices, outdated libraries, or security gaps. It could also flag inconsistent documentation, making onboarding more challenging and costly. By identifying these problems beforehand, you can assess the code’s maintainability and decide if the acquisition is truly worth the investment.
What if the Infrastructure Can’t Scale?
What if you envision scaling the technology across your customer base, but the infrastructure wasn’t designed for growth? A technical due diligence platform can simulate different load levels, revealing whether it’s prepared for increased demand or if you’ll face crashes during critical moments.
These simulations help identify bottlenecks, highlight where the infrastructure needs reinforcement, and indicate if the architecture is flexible enough for growth. Sometimes, the platform may reveal that scaling will require costly upgrades, giving you a realistic view of the investment needed to align the tech with your growth targets.
What if the Technology Fails Compliance Standards?
Imagine discovering post-acquisition that data handling in the acquired tech doesn’t comply with regulations like GDPR. A platform built for technical due diligence can audit data privacy, security practices, and handling protocols before finalizing the acquisition, saving you from future legal and financial risks.
By assessing compliance with standards such as GDPR and other regional laws, the platform helps identify gaps that could lead to fines or legal issues. For instance, it may flag inadequate data encryption or storage practices that don’t meet regulatory standards, letting you plan corrective actions or reconsider the acquisition if non-compliance poses a significant threat.
What if Key Integrations Aren’t Feasible?
What if integrating the acquired software with your current systems proves to be overly complex, delaying timelines and increasing costs? A technical due diligence platform analyzes software compatibility, helping predict and address integration challenges before they impact your project.
The platform might highlight specific dependencies or API limitations that complicate integration with existing systems. By identifying these issues early, you can gauge if the acquisition remains worthwhile or if additional resources are needed to bridge gaps.
What if the Technology Has Hidden Security Vulnerabilities?
Imagine acquiring new technology only to find a major security vulnerability that puts your organization at risk of a data breach. A due diligence platform that is technical can scan for hidden vulnerabilities, providing a comprehensive risk assessment before acquisition, so you avoid unexpected security costs.
For instance, the platform might identify weak authentication protocols or exposure to risky third-party dependencies. By revealing these risks, the platform enables you to negotiate with the seller to address them or prepare for necessary improvements immediately after acquisition.
What if Long-Term Maintenance Costs Are Higher Than Expected?
Finally, picture that the technology requires much more ongoing maintenance than anticipated, stretching your team’s resources and budget. A technical due diligence platform can help estimate long-term maintenance by analyzing code quality, documentation, and complexity.
If the platform reveals heavy reliance on outdated libraries or frequent need for manual intervention, it signals high maintenance costs. This insight allows you to make an informed decision, ensuring the technology aligns with your resources and budget.
By exploring several what-if scenarios you can better understand potential challenges and avoid unexpected setbacks.
