IT Due Diligence: a deep dive into the code

IT Due Diligence

We take a deep dive into the code underlying digital assets to identify and quantify hidden investment risks and opportunities.

Leading PRIVATE EQUITY AND INVESTMENT COMPANIES Rely on us FOR THEIR IT DUE DILIGENCE PROJECTS

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Dive a level deeper and invest with confidence.

Typical technology due diligence barely scratches the surface, including little more than interviews with the target company’s IT leaders, review of documentation, and a demo of the software. The result? Investors buy a “black box” of software and only later find out that it can’t support their strategic goals. Our experts know that conducting interviews and reviewing documentation isn’t enough. To identify the hidden IT-related risks and opportunities of your investment, you need to understand what’s going on in the source code itself.

BUY

Pre-acquisition: Buy-side due diligence

Investing in a company means acquiring its complex IT landscape, full of hidden risks. Traditional IT due diligence often misses these, leaving you with potential liabilities. Our detailed source code analysis reveals the hidden risks and estimates the cleanup required, ensuring your investment aligns with your goals.
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1

Technology risk profile  

We assess risks in the target company's technology, down to code level, to highlight any potential IT surprises. including both primary and supporting elements. 
2

Software Risk Assessment

We assess the future adaptability, scalability, and integration potential of the target company’s software, giving you the facts to understand its future growth feasibility and the likely costs. 
3

Post-transaction roadmap  

We use our own calibrated financial estimation models for maintenance, repair, and continued development, aligning IT investment with your business plan. 
4

Rebuild effort estimation  

We quantify technical debt in terms of both time and money, detailing how many months of work would be needed to rebuild IT assets from scratch by an average team of software developers. 
5

Insight into other due diligence streams  

We offer critical insights for CAPEX/OPEX projections, development team productivity, and competitive technology analysis. 
6

2–3-week turnaround  

Our expert consultants deliver fast, focused insights within the tight timelines investors require. 
GROW

Growth phase: Value creation

After a successful acquisition, implementing IT due diligence recommendations and achieving investment objectives can be challenging. Sigrid continuously monitors software quality and security, providing actionable insights to keep your investment on track and enhance asset value.
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1

Continuous monitoring  

Sigrid measures your code against international quality standards and alerts your team when a risk is introduced that could deter your investment objectives.  
2

Software Risk Assessment

Sigrid generates concise, actionable board reports for meetings, ensuring transparency and informed decision-making. 
3

Roadmap design  

Our experts develop a roadmap containing risk mitigating and value creating milestones, with progress continuously monitored within the Sigrid platform. 
4

Centralized insights

With Sigrid, developers, architects, and other IT stakeholders get centralized access to our findings on your applications to help you stay on top of performance. 
5

Performance tracking    

Within the Sigrid platform, we define the right KPIs and install performance controls to ensure your software continues to support your investment success. 
SELL

Exit readiness: Sell-Side Due Diligence 

Preparing for an exit involves uncovering risks and anticipating buyer concerns. Without independent validation of software quality, your company's value could be compromised. Our expert software assessment mitigates surprises, helping you enhance buyer confidence and secure favorable deal terms for a successful sale. 
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1

IT due diligence report

We provide an independent, in-depth sell-side due diligence report on the health of your software, enhancing the credibility of your sales material.  
2

Presentation for purchasers  

We offer a session with potential buyers to walk them through our report and provide them with a clear understanding of your software assets.  
3

Fast and efficient transactions 

Our comprehensive due diligence report eliminates the need for extensive buyer-side analysis, speeding up the transaction process and minimizing business disruption. 
4

Software certification  

We certify your software according to the globally recognized ISO/IEC 25010 product quality standard, demonstrating your software’s top quality to potential buyers. 

We dig deep into the code to help you answer questions like:

Does the target company’s software support your future growth plans?

Can it scale to more users, adapt to new platforms, or integrate with other solutions?

A male developer working with Sigrid on his monitor

Are there IP-related issues hiding in the source code?

Liberal use of open source software or dependence on third-party solutions may have legal implications.

What’s the value of the software portfolio and what future costs must be factored in?

How well is it engineered? How much technical debt do you face?

How strong is the IT team of the target company?

How productive is it compared to industry benchmarks? What is the capacity for innovation?