{"id":8205,"date":"2024-02-18T19:23:21","date_gmt":"2024-02-18T18:23:21","guid":{"rendered":"https:\/\/joapen.com\/blog\/?p=8205"},"modified":"2024-02-18T19:23:25","modified_gmt":"2024-02-18T18:23:25","slug":"technical-due-diligences","status":"publish","type":"post","link":"http:\/\/joapen.com\/blog\/2024\/02\/18\/technical-due-diligences\/","title":{"rendered":"Technical due diligences"},"content":{"rendered":"\n<p>Due diligences have different layers of work: financial, market value, people engaged in the company, etc.<\/p>\n\n\n\n<p>Technical side of the due diligences have evolved a lot and now there are many recipes but some consensus about what you should cover as minimum.<\/p>\n\n\n\n<p>The technical side of a due diligence is basically a health check of the company, where:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>You dig into the assets they have and the assets they are building.<\/li>\n\n\n\n<li>You try to understand the risks that the company is taking at product level and in terms of technology.<\/li>\n\n\n\n<li>Leadership team is evaluated,<\/li>\n\n\n\n<li>The teams, the processes and the organization (as a whole),<\/li>\n\n\n\n<li>The product\/s they are building (this perspective is linked to market and technology),<\/li>\n\n\n\n<li>And the technology stacks they are working on, and the practices they use.<\/li>\n<\/ul>\n\n\n\n<p>Before to start a due diligence, you should understand the type of company you are addressing. For instance this basic classification could help:<\/p>\n\n\n\n<figure class=\"wp-block-table\"><table><thead><tr><th><strong>Stage<\/strong><\/th><th><strong>Business Focus<\/strong><\/th><th><strong>Due Diligence Focus<\/strong><\/th><\/tr><\/thead><tbody><tr><td>Seed \/ A<\/td><td>Build<\/td><td>Potential<\/td><\/tr><tr><td>A \/ B \/ C<\/td><td>Grow<\/td><td>Scalability, ability to adapt quickly<\/td><\/tr><tr><td>C \/ D +<\/td><td>Expand and Mature<\/td><td>Maintainability, Compliance (IPO, Exit)<\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n<p>A good due diligence have a good balance between the good assets and potential the company has, and the problems and high exposure risks they have (everybody has skeletons in the closet).<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">A basic structure of a technical due diligence process<\/h2>\n\n\n\n<p>The process itself varies depending on many things, but the basic things you should cover is:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Preliminary work to define scope, expectations and identify the stakeholders.<\/li>\n\n\n\n<li>A Kick-off meeting where the process itself is reviewed and the main participants understand and agree about how things are going to work.<\/li>\n\n\n\n<li>Revision of the documentation,<\/li>\n\n\n\n<li>Interviews with the identified stakeholders, with a walkthrough.<\/li>\n\n\n\n<li>Build the report and ask for final questions.<\/li>\n\n\n\n<li>Deliver the report.<\/li>\n<\/ul>\n\n\n\n<p>Usually this side of the due diligence work is integrated in the whole due diligence process.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">Due diligence is a very contextual process<\/h2>\n\n\n\n<p>and by that reason the topics you cover can vary a lot. The basis are:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>The market fit they have found or they are exploring<\/li>\n\n\n\n<li>The business model the company implements to take advantage of the context where they compete.<\/li>\n\n\n\n<li>The strategy they are using to advance in the environment where they work.<\/li>\n\n\n\n<li>The product side of the company.<\/li>\n\n\n\n<li>The leadership team.<\/li>\n\n\n\n<li>The development processes and the practices used.<\/li>\n\n\n\n<li>The infrastructure.<\/li>\n\n\n\n<li>The deployment process.<\/li>\n\n\n\n<li>The architecture of the solutions<\/li>\n\n\n\n<li>The quality assurance and testing processes<\/li>\n\n\n\n<li>How people work with other teams.<\/li>\n\n\n\n<li>How aligned they are to the compliance requirements of their context.<\/li>\n\n\n\n<li>Security.<\/li>\n\n\n\n<li>The horizontal processes (human resources, finance, marketing, etc)<\/li>\n\n\n\n<li>How decisions are done (for instance which technical components are build or consumed from other vendors).<\/li>\n<\/ul>\n\n\n\n<p>The list can be extended, but I will stop here.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Due diligences have different layers of work: financial, market value, people engaged in the company, etc. Technical side of the due diligences have evolved a lot and now there are many recipes but some consensus about what you should cover as minimum. The technical side of a due diligence is basically a health check of &#8230; <a title=\"Technical due diligences\" class=\"read-more\" href=\"http:\/\/joapen.com\/blog\/2024\/02\/18\/technical-due-diligences\/\" aria-label=\"Read more about Technical due diligences\">Read more<\/a><\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[42],"tags":[],"class_list":["post-8205","post","type-post","status-publish","format-standard","hentry","category-compliance"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.4 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>Technical due diligences -<\/title>\n<meta name=\"description\" content=\"Due diligences have different layers of work: financial, market value, people engaged in the company, etc. Technical side of the due diligences have - joapen projects\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"http:\/\/joapen.com\/blog\/2024\/02\/18\/technical-due-diligences\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Technical due diligences -\" \/>\n<meta property=\"og:description\" content=\"Due diligences have different layers of work: financial, market value, people engaged in the company, etc. Technical side of the due diligences have - 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