What is technology due diligence?

Definition

Technology due diligence is the assessment of a target company’s software, architecture, security, infrastructure and engineering organization to identify risks and investment needs before a transaction. Modern technology due diligence inspects the systems directly - code, cloud, pipelines, runtime and operational data - instead of relying mainly on interviews and documents.

In short

Key takeaways.

  • 01

    Traditional diligence samples code and documents; many risks live outside the codebase.

  • 02

    Correlating signals across code, security, cloud, DevOps and runtime reveals systemic risk.

  • 03

    Findings should carry evidence and translate into valuation and post-close plans.

How it works

Technology due diligence, step by step.

  1. 01

    Scope the decision

    Agree the investment question and which systems are in scope.

  2. 02

    Connect read-only

    Access repositories, cloud accounts, CI/CD and ticketing without changing anything.

  3. 03

    Analyze each layer

    Code structure and debt, runtime topology, cloud/IaC/IAM exposure, delivery stability, operational signal and security posture.

  4. 04

    Correlate

    Cross-layer correlation surfaces hidden modernization complexity, security exposure concentration and delivery fragility.

  5. 05

    Report with evidence

    Findings, scores and a remediation roadmap, each linked to the evidence behind it.

Why it matters

Technology risk drives post-close cost: modernization capex, security incidents and delivery problems that were invisible in an interview-led review. Investors need structural clarity before capital is deployed.

FAQ

Common questions about technology due diligence.

Typically between LOI and close in an acquisition or investment, and increasingly post-close to plan value creation.

See it in practice

Watch Ana do it in your stack.

Thirty minutes, your systems, one real problem.