Technical Due Diligence|

Why Technical Due Diligence is Crucial for Every Company?

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​In today's digital landscape, every company operates as a technology entity to some extent. Leaders in the market don't just use technology; they strategically leverage it to secure a competitive edge. This strategic leverage underscores why technical due diligence is not just beneficial but essential.

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• Risk Identification and Mitigation: Comprehensive technical due diligence uncovers hidden risks and vulnerabilities within technology assets, ensuring investments are sound and secure.

• Value Maximization: By identifying optimization opportunities, technical due diligence directly contributes to enhancing operational efficiency and, ultimately, the value of the investment.

• Strategic Alignment: It ensures the technology's capability aligns with the business's strategic goals, facilitating growth and scalability.

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Technical Due Diligence Capabilities

At RingStone, we take a pragmatic and strategic 360 holistic approach to Technical Due Diligence. This allows us to be uniquely positioned to uncover risks hidden concerns, and optimization opportunities while keeping the business in mind.

Our technical due diligence is data-driven, with quantifiable benchmarks that feed into the value creation cycle for maximum benefits. This allows the acquirer to compare apples to apples and empowers them to make business decisions quickly and clearly.
 

Strategically, we seek to fully understand the investment thesis and start with the end in mind. This helps us determine the suitability of end-to-end technology and its ability to evolve to accommodate the business strategy and technology shifts.
 

The end-to-end diligence comprises business and technology strategy, roadmap, software architecture, code health, team capabilities, deployment setup, infrastructure, security, and leadership.

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The RingStone Difference in Technical Due Diligence

At RingStone, our approach to technical due diligence stands out for its depth, rigor, and strategic insight. We don’t just conduct due diligence; we provide a 360-degree holistic analysis that aligns technology with your business strategy. Here's how we make a difference:

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• Data-Driven Insights: Our methodology is rooted in quantifiable data, providing clear benchmarks for comparison and decision-making.

• Strategic Foresight: Starting with the end in mind, we evaluate the technology's adaptability to future business and market shifts, ensuring long-term viability.

• Comprehensive Evaluation: Our end-to-end assessment covers everything from software architecture and code health to team capabilities and security protocols, offering a complete picture of your tech investment.

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We Move Fast And Accommodate Fast-Moving Deals.

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Technical Due Diligence Advisory Services

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Outside-In Stealth - Technical Due Diligence (~ 1-3 weeks)

An outside-in approach to validate the thesis, confirm interest, and answer specific questions.

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When to Consider?

• You have an initial interest in a company and exploring.

• You are in discussion with a company, but no commitments on either side.

• You need a high-level validation to limit future effort and spending.

• You are interested in a minority interest and need high-level validation.

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Extended Report - Technical Due Diligence (~ 3-4 weeks)

Full in-depth diligence technical due diligence with full risks and opportunities backlog, mitigations, industry benchmarks, best practices benchmarks, cost optimization opportunities, and a value-creation roadmap.

When to Consider?

• Do you have an LOI in place or soon to be?

• You are in exclusivity or have healthy access.

• You prefer in-depth risks, opportunities, and value-creation options.

• You would like complete documentation of the functional areas in depth.

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Standard Report - Technical Due Diligence (~ 2-3 weeks)

The scope is identical to the Extended report without a lighter touch on the amount of supporting documentation.

Full in-depth technical due diligence with full risks and opportunities backlog, mitigations, industry benchmarks, best practices benchmarks, cost optimization opportunities, and a value creation roadmap.

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When to Consider?

• Do you have an LOI in place or soon to be?

• You are in exclusivity or have healthy access.

• You prefer in-depth risks, opportunities, and value-creation options.

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Summary Report - Technical Due Diligence (~ 2 weeks)

The scope is identical to the Extended report, with minimal depth in supporting documentation and value-added content.

Full in-depth diligence technical due diligence with core risks and opportunities, industry benchmarks, best practices benchmarks, cost optimization opportunities, and a value creation roadmap.

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When to Consider?

• Do you have an LOI in place or soon to be?

• You are in exclusivity or have healthy access.

• You prefer in-depth risks and opportunities.

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Redflag Report - Technical Due Diligence (~ 1-2 weeks)

High-level red flag thesis validation with top risks

When to Consider?

• Do you have an LOI in place or soon to be?

• You are in exclusivity or have some healthy access.

• You have minimal time and need a quick red flag.

Competitive - Technical Due Diligence (~ 3-5 weeks)

Combined standard and stealth diligence. Full in-depth technical due diligence with full risks and opportunities backlog, industry benchmarks, best practices benchmarks, cost optimization opportunities, and a value creation roadmap with extended time to accommodate access challenges. 

When to Consider?

• You are in discussion with a private or public company.

• You are part of a competitive process with other bidders.

• You have limited access or some basic management access.

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FAQs on Technical Due Diligence

• What sets technical due diligence apart from general due diligence? Technical due diligence focuses specifically on evaluating the technology and digital assets of a business, crucial for assessing the true value and risk profile of tech-centric or enabled companies.

• How does technical due diligence facilitate value creation? By identifying both risks and opportunities, technical due diligence informs strategic decisions that enhance operational efficiencies, reduce costs, and drive innovation.

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