Executive Advisory · Services
Due Diligence and M&A Integration: Seeing the Operation Behind the Deal
Most of the value in a technology acquisition is created or lost after the signing. It starts with seeing the target’s operation clearly before it.
Financial and legal due diligence are standard in every deal. Technology and operational due diligence are often lighter, and that is where many surprises come from: a product that cannot be produced at the planned cost, a supply chain dependent on one supplier, critical knowledge held by a few people, or a codebase that cannot scale. After the deal, integration decides whether the expected value is realized.
What technology and operational due diligence examines
- The real maturity of the technology and the product, against the claims in the plan.
- Manufacturing or delivery readiness, cost structure and scalability.
- Supply chain dependencies, single-source components and obsolescence.
- Quality systems, certifications and customer qualification status.
- Key people, organizational capability and knowledge concentration.
- For software and cyber: architecture, code quality, security posture and open-source licensing.
From findings to decisions
Due diligence is useful only if it changes decisions: the price, the structure, the conditions, the integration plan or the decision to walk away. Good findings are specific, quantified where possible, and linked to a clear implication for the deal.
Integration: the first months matter most
Integration needs a plan before closing: what will be combined, what will remain independent, who decides, and how key people and customers will be retained. The first months set the tone. Decisions should be fast and clear, while changes to how people work should be deliberate and explained.
- Define the sources of value and the integration objectives before signing.
- Appoint an integration lead with real authority and time.
- Protect what made the target valuable: its people, customers, know-how and pace.
- Track integration with a small set of operational and people metrics.
Hardware, software and cyber
- Hardware: production transfer, supplier consolidation and quality system alignment are often the hardest integration tasks.
- Software: platform and codebase integration can take far longer than planned, and product roadmaps must be reconciled early.
- Cyber: security operations, access and incident response need immediate attention, and the target’s past incidents must be understood before closing.
How we work
We support acquirers and investors with focused technology and operational due diligence, written for decision-makers, and support both sides in planning and leading integration, including production and technology transfer between sites and countries.
Questions for the deal team
- Which assumptions in the deal model depend on the target’s operations performing as claimed?
- What knowledge would we lose if three key people left the day after closing?
- Who will lead integration, and is it their full-time job?
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This article reflects the author’s professional opinion only. It is general information, not professional advice or a recommendation to take any action, and any use of it is the reader’s sole responsibility.