Technical due diligence

The world of M&A and private equity investment is extremely high stakes, making it all the more important to enter every opportunity with absolute confidence. Profitable investments require clarity to accurately assess valuation and accelerate growth. When technical due diligence is done right, better decisions are made and deals close faster.

We know how the industry operates. And that’s why we do the leg work. We empower M&A firms and private equity investors to move away from risk and toward growth.

Make your next investment your most strategic one.

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Why this work matters now

Rapid digital transformation is a common theme in M&A and private equity. A target acquisition’s underlying technology can make or break its future value, and there’s intense pressure to deliver quick returns and realize cost synergies. However, traditional financial reports don’t always accurately capture technical debt or platform fragility, which may result in discrepancies in the stated valuation and true cost or risk of the tech stack.

This is why technical due diligence is an absolute necessity. It’s a risk mitigation strategy that identifies and protects against technical debt, integration delays, and more.

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What happens when you don’t conduct proper technical due diligence

You’ve likely seen deals go bad from:

Costly unknown liabilities
Inaccurate valuations
Legal and compliance issues
Operational inefficiencies
Misaligned expectations
AI adoption gone wrong
Unexpected cloud costs
Unmet security expectations
Damaged reputation

Truthfully, the list goes on. There are a lot of factors that can pose a risk to your investment. But, it doesn’t have to be that way.

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Codal’s perspective on technical due diligence

We help M&A firms and private equity investors make the right, strategic decisions. Our comprehensive approach guides you through the entire process so you can mitigate technical risk, validate the investment, and accurately assess valuation.

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Technical architecture review

Assessing your target’s current technical state sets the stage for a successful acquisition. We holistically review how the existing architecture aligns with business goals and current security and performance requirements. We’re also looking at how scalable and maintainable the current state is. Once we have a clear understanding, we make actionable recommendations toward an improved future state. Because digging deep into the details from the beginning means less surprises along the way.

Infrastructure & software cost analysis

Large, technically-driven organizations typically have higher licensing and subscriptions costs. So, how do you ensure your target’s total cost of ownership (TCO) makes sense and supports your investment objectives? We help you analyze inefficiencies in costs and redundant and duplicate softwares. We also identify opportunities to reduce or consolidate costs from SaaS, PaaS, and cloud vendors. Because the more confident you are in the value of your investment, the more accurately you can predict future financial performance.

Platform advisory

Your target’s current platform also needs to make sense for the investment to be successful. We analyze business needs and map them toward the best platform choices. We’ve expertly crafted a platform advisory matrix based on specific requirements, such as cost effectiveness, risk mitigation, scalability and future priorities. Our final recommendation sets you on the best path forward. Because your investment is only as successful as the platform powering it.

Why teams choose Codal for technical due diligence

We’ve worked with M&A and private equity firms basically since our inception. We know how they operate and we’ve tailored our years of experience building digital solutions to integrate seamlessly into due diligence processes. We also have team members who’ve worked in the industry and understand the intricacies of what it takes to get a deal done right.

We don’t just quickly “check under the hood” and leave you to it. We’re dedicated to ensuring you’re confident in your investment throughout the entire process. Our in-depth approach aligns your decisions with your overall financial and growth objectives so every move you make reduces risk, optimizes efficiency, and scales your portfolio. And what makes us unique is that we also do the work in-house. We’re not like the other diligence firms. We’re a consulting firm that has nearly 20 years of experience delivering complex technical solutions.

We pride ourselves on being technology agnostic. We analyze your needs and only advise what actually makes sense for your investment objectives. We’ve cultivated strong partnerships with the leading eCommerce platforms, content management systems, cloud platforms, and more, and remain neutral so our decisions are always rooted in your financial and strategic success.