black wooden d and c bookshelf_edited.jp

Technology Due Diligence

Technology Due Diligence is a comprehensive and impartial examination of the products, technical condition, code quality, decision-making logic, architecture, processes and risk assessment of an organization before M&A or capital investment. It also provides the development team with a detailed examination of their full stack, its strengths and limitations. Venture capitalists and private equity investors use Technology Due Diligence to ensure that they make a well informed decision about their investment into technology-first enterprises.

What is technology due diligence?

Technology Audit

Copperpod analyzes existing hardware and software systems and processes owned by the seller to provide you a clear and detailed view of the seller's architecture, growth plans and the investment that such growth will require.


1. Architectural Overview

2. Hardware owned/leased

3. Different languages and skills required for scaling the products
4. Developer documentation, agreements and manuals
5. Third Party tools and platforms used
6. Version Control and Backup Policies
7. Information Security and Storage

8. Ongoing or Planned Migrations

9. Alternative Products

Technology Due Diligence

Code Quality Audit

Copperpod conducts a deep review of software products to provide key metrics on code quality - helping clients assess their investment on the following four parameters:

  • LEGAL PROTECTION

  • EASE OF MAINTENANCE

  • SCALABILITY

  • SECURITY

Image by David Rangel

In particular, we raise red flags based on the following important metrics:

1. Code-to-Comment Ratio (for maintenance, bug-fixing and on-boarding of new developers)
2. Code Complexity (bench-marked against industry averages)
3. Copyright, Confidentiality and Authorship markings
4. Open Source to Proprietary Code Ratio (how much of the product is truly innovative?)
5. Restrictive and Conflicting Licenses (for example, using certain open source modules may require the entire product to be open source and made available to the public in source code form) 

Intellectual Property Audit

An accurate assessment of a company's intellectual property is seldom straightforward. Our intellectual property audit investigates existence, ownership and market potential for all patents, trademarks, trade secrets and other intellectual property owned by the seller.
 

Client Success

Due Diligence: California PE firm acquires Canadian cloud computing provider