Due Diligence Report Structure
Executive Summary
- Overall technical assessment
- Key risks and mitigations
- Valuation considerations
- Integration complexity estimate
Technology Assessment
| Area | Rating | Notes |
|---|
| Architecture | A-F | Scalability, modularity |
| Code Quality | A-F | Standards, testing |
| Security | A-F | Vulnerabilities, compliance |
| Infrastructure | A-F | Reliability, cost |
| Team | A-F | Capability, documentation |
Detailed Findings
- Architecture analysis
- Codebase review
- Security assessment
- Infrastructure evaluation
- Team and process review
Risk Register
| Risk | Severity | Likelihood | Mitigation | Cost |
|---|
| … | High/Med/Low | High/Med/Low | … | $X |
Integration Roadmap
- Immediate actions (Day 1-30)
- Short-term (Month 1-3)
- Medium-term (Month 3-6)
- Long-term (6-12 months)
Due Diligence Process
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| Week 1: Documentation Review
โโโ Architecture docs
โโโ Technical specs
โโโ Previous audits
โโโ Team structure
Week 2: Deep Dive
โโโ Codebase analysis
โโโ Infrastructure review
โโโ Security scanning
โโโ Performance testing
Week 3: Interviews
โโโ Technical leadership
โโโ Key engineers
โโโ DevOps/SRE
โโโ Product team
Week 4: Report & Presentation
โโโ Findings synthesis
โโโ Risk prioritization
โโโ Recommendations
โโโ Stakeholder presentation
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Technologies I Evaluate
Languages: Python, TypeScript, Java, Go, PHP, Ruby
Frameworks: All major web and API frameworks
Databases: PostgreSQL, MySQL, MongoDB, Redis
Cloud: AWS, GCP, Azure
AI/ML: LLM integrations, ML pipelines, data systems
Infrastructure: Kubernetes, Docker, Terraform
Frequently Asked Questions
What is technical due diligence?
Technical due diligence is an assessment of a company’s technology for investment decisions. It evaluates: code quality, architecture, technical debt, scalability, security, team capabilities, and technology risks that could affect the investment.
How much does technical due diligence cost?
Technical due diligence typically costs $150-250 per hour. A quick assessment (1-2 days) starts around $5,000-10,000, while thorough due diligence for acquisitions ranges from $20,000-75,000+.
When is technical due diligence needed?
For: M&A transactions, venture capital investments, private equity acquisitions, or when buying a technology company. It protects against hidden technical problems that could affect valuation or require unexpected investment.
What risks does due diligence uncover?
Common findings: technical debt requiring significant investment, scalability limitations, security vulnerabilities, key-person dependencies, outdated technology, unclear IP ownership, and realistic estimates for roadmap items.
How quickly can you complete due diligence?
Timelines: quick assessment (2-3 days), standard review (1-2 weeks), thorough review (2-4 weeks). I work with deal timelines and can expedite when needed while maintaining thoroughness.
Experience:
Related Services: Architecture Review, Fractional CTO, AI Strategy