M&A technology due diligence
We review the target’s technology before you close: what the business runs on and who owns each system, what it costs, which contracts carry over, who can get in, and whether the backups actually restore. You get a red flag call in week one and a written report in two to three weeks, ranked by cost and timing.
Built for targets of 25 to 300 people, where nobody inside owns the full picture and a Fortune 500 request list produces more noise than answers.
Who it is for
Who is it for?
- Private equity firms and independent sponsors acquiring a company of 25 to 300 people
- Corporate buyers with no internal technology team to send into the target
- Lenders, boards, and co-investors who want a second read on technology before close
Deliverables
What do you get?
- Systems inventoryEvery system the target runs on, who owns it, and what it costs
- Contract and renewal review, including assignment and change-of-control terms in technology contracts
- Technology spend reconciled to the ledger, run rate against what your model assumes
- Access reviewWho holds administrative rights, and what is tied to one person’s personal account
- Recovery evidenceWhen a restore was last tested, and how long the business would be down
- An assessment of the MSP and the key vendors
- A written report with findings ranked by cost to fix and when each one bites, plus the questions to put to the seller
- An outline of the first 100 days of technology work after close
The process
How does it work?
- 1
Days 1 to 2
Scope and request list
A 30-minute scoping call, then a request list sized for a company of this size rather than a generic template.
- 2
Week 1
Documents and interviews
Data room review, then short interviews with whoever owns technology today, usually the controller, the office manager, and the MSP. The interview list is agreed with you first.
- 3
End of week 1
Red flag call
Anything that could change price or structure comes to you by phone before the report is written.
- 4
Weeks 2 to 3
Written report
Findings ranked by cost and timing, the seller questions, and the 100-day outline.
Price
What does it cost?
From $15,000
A fixed fee quoted per target after the scoping call. The fee depends on the number of sites, entities, and core systems.
An engagement letter is signed before any work starts.
Scope
What is not included?
- Penetration testing and other specialist testing. If the review turns up a question that needs a specialist, the report says so and we can introduce one.
- Legal review of contracts. We flag the technology terms; your counsel reads the contract.
- Source code review of a software product.
Questions
Questions buyers ask
What does technology due diligence cover for a company of 25 to 300 people?
Five questions: what the business runs on and who owns each system, what it costs and when the contracts renew, who has access, whether the business can recover from an outage, and whether the MSP and key vendors deliver what they are paid for. At this size those five drive most of the technology cost after close.
How long does it take?
Two to three weeks from data room access. The red flag call comes at the end of the first week, so anything that could change price is in front of you before the report.
Who do you speak with at the target?
Whoever owns technology today. At this size that is usually the controller or CFO, the office manager, and the MSP. We keep the list short and agree it with you before anyone is contacted.
Is penetration testing included?
No. This is an operating review of systems, spend, contracts, access, and recovery. If the review finds something that needs specialist testing, the report says so and we can introduce a firm that does that work.
What happens after close?
The report includes a 100-day technology outline. If you want it run, the post-acquisition integration service picks it up from there.
Related services
- TransactionsPost-acquisition technology integrationPlan $15,000 to $25,000; execution $11,500 per monthPlan in two to four weeks, then the executionSee the service
- TransactionsSell-side technology readiness$10,000 fixedFour to six weeksSee the service
- LeadershipTechnology advisor to the board$2,500 per monthMonthly, 6-month initial termSee the service
Is this the right fit?
Thirty minutes on the phone settles it. If it is not the right fit, we will say so.