Technology Due Diligence Services
Companies world over want to establish their presence in the world’s largest IT market and there is no faster and better way to do it than via a merger with or acquisition of an American company. The acquirers are looking for US presence, access to US markets (including government and defense), a ready customer base, respected and proven technology and/or professionals or potential access to US capital markets. Whatever be the goal, M & A is an attractive option for American and non-American companies.
There are legal, financial, logistics, people, culture and other very vital issues to be considered while pursuing a M & A transaction but perhaps the most important, the one that has the most impact on the long-term success (or otherwise) of the merger or acquisition is to understand if the two companies have products, technologies, architecture, roadmaps that will synchronize well to deliver the promised results or in other words, will the two organizations genuinely integrate into a common technology or product platform to deliver a seamless experience to the customer or will the customer turn away confused or irritated at the lack of cohesion within your own offering?
The history of technology acquisitions is replete with dream-team combinations languishing and losing value for owners and shareholders due to technology and product incompatibility.
We have deep insights into the technology and product canvas of the high-tech sector and can analyze the entire picture from vision and mission to architecture nuts & bolts to see if the two structures can stand together. We perform a ‘technology due diligence’ on the target company to see the potential fitments between you (the acquirer or initiator) and tell you up-front what it will take to integrate successfully or whether it makes sense at all even to attempt.
Our due diligence covers the following areas:
- Compatibility of mission, product lines of the two organizations
- Customer perceptions about product, quality, organization, culture, pricing and services
- Overlaps, duplication and gaps
- Product portfolio, markets addresses, customer loyalty
- Technology alliances, ease of (or difficulty in) migrating technologies
- Product architecture and potential for product integration, expansion, mergers
- Technology and product roadmaps
- Process compatibility across the SDLC, support services and product maintenance
- Potential value addition of the acquiree’s portfolio to the acquirer
- People and culture compatibility across two organizations
- Important vendor commitments and potential conflicts of interest
- Customer lock-in, loyalty, deserting, retention issues
- Pricing model of both companies and potential issues
- Building the new technology organization structure absorbing best talent from both organizations
Depending on what stage you bring us in, we can perform all of the above (or other tailored services) and provide you comprehensive insight into the potential payoffs and pitfalls for each of your target companies so you can deploy you war-chest most optimally.