Technical due diligence
Technical due diligence is the assessment of a target company's software, engineering and technology before a transaction: what state the code is in, what the team produces, and what risks are carried in the codebase. For software intensive businesses it sits alongside financial and legal diligence, because the code is a large part of what is being bought.
Done well, it reads the target’s code directly rather than relying on a data room or the seller’s own account, surfacing hidden technical debt, the AI-generated share of the code, key-person risk and complexity that will slow every future release.
The cost of getting it wrong is concrete: failed technical due diligence costs acquirers around 25% of deal value on average (Deloitte and Patsnap, 2026). The same reading that informs the decision can become a day-one baseline for the asset after close.
Technical due diligence, in full →
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