Technical Due Diligence

A comprehensive data-oriented approach minimizing risks and maximizing value

Technical Due Diligence|

Why A Technical Due Diligence Is Important?

 

Today, every company is a technology company in one form or another. Market leaders build or leverage technology intentionally to acquire competitive advantages. 

There are no longer car companies, banks, or healthcare providers. There are tech-enabled companies that produce autonomous vehicles, digital banking services, and technologies that help diagnose and treat patients.

 

Whether the technology is the primary business or the backbone of a tech-enabled company, it has a significant impact on the health of the company, profitability, and the ability to compete. 

 

As an acquirer, market size and TAM may be one side of the coin, but the other side that is provided by the technical due diligence will determine the ability to seize, grow, and profit within that market.
 

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, but also uncover hidden concerns and optimizations 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 be able to compare apples-to-apples and empowers them to make business decisions quickly with clarity.
 

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.

What Makes Us Different?

Deep technical experience and years of execution experience working with investors, companies, and hands-on with teams globally, provide us with a competitive edge.

Our approach combines humans, machines, and tools. Our team comprises senior technical experts such as CTOs with strong business acumen complimented by proprietary software, industry, and best practices data to help us to deliver the best value for our clients with a pragmatic focus on practical risk mitigation and value creation.

Diligence packages are tailored based on the target situation, stage, size, revenue, maturity, and more importantly the investment strategy and goals. We help you decide which package is best for your situation.


Whether it is a stealth mode that requires an outside-in approach, a competitive deal with limited access and a compressed timeline, or standard due diligence, we offer multiple products ranging from outside-in to full-diligence to accommodate your needs.

We move fast and accommodate fast-moving deals.

Software Technical Due Diligence Core Offerings

Stealth Technical Due Diligence (~ 1 week)

Outside-in approach to validate thesis, confirm interest, and answer specific questions

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 spend

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

Standard Technical Due Diligence (~ 2-3 weeks)

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

 

When to Consider?

  • You have an LOI in place or soon to be

  • You are in exclusivity or have a healthy access

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

Basic Technical Due Diligence (~ 1-2 weeks)

High-level red flag thesis validation with top risks

 

When to Consider?

  • You have an LOI in place or soon to be

  • You are in exclusivity or have some or a healthy access

  • You have a very limited time and need a quick red flag

 

Competitive Technical Due Diligence (~ 3-4 weeks)

Combined standard and stealth diligence. Full in-depth diligence technical due diligence with full risks and opportunities backlog, industry benchmarks, best practices benchmarks, costs 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 with some management access

 
Resources|

  • Free Soundboard Sessions: Chemistry has to work and you and your team must have confidence in our execution. We offer a no-strings-attached session to discuss potential acquisitions and deals at no cost to you. Contact us to book a session

  • Attend RingStone Academy: Our team shares insights and experience about technology best practices, technical due diligence practices, software architecture, cloud, and security topics. 

  • Custom Education Sessions: We offer free sessions to help deal teams and operating partners in Private Equity with technology best practices for technical due diligence execution and what to look for in the early exploration stages. Contact us to discuss availability

  • Other Resources