Capital Readiness · Services
Technology and Operational Due Diligence: What Investors Need to Know Before They Invest
In technology companies, many of the risks that decide an investment’s outcome sit in places financial due diligence does not reach: the product, the process and the people.
Financial and legal due diligence tell investors what a company has done. Technology and operational due diligence help them understand what it can do next: whether the product will mature, whether it can be produced or delivered at scale, and whether the organization can execute the plan they are funding.
What we examine
- Technology maturity against the plan, and the critical technical risks.
- Manufacturing or delivery readiness, cost structure and scalability.
- Supply chain dependencies and long-lead or single-source items.
- Quality systems, certifications and customer qualification.
- Organization, key people and the capacity to execute.
- For software and cyber: architecture, code quality, security posture and licensing.
Reports written for decisions
A due diligence report is useful only if it informs a decision. Findings should be prioritized by impact, linked to the investment thesis, and translated into concrete implications: conditions, milestones, adjustments to the plan or a recommendation to walk away.
After the investment
The same assessment can become the basis for a value-creation plan: the operational improvements, hires and milestones that will help the portfolio company reach its next stage.
How we work
We conduct focused, time-bound assessments, through document review, interviews and site visits, under strict confidentiality. Reports are written in plain language for investment committees. We assess and advise; we do not act as investment advisers or brokers.
Questions for the investment team
- Which assumptions in our model depend on operations we have not examined?
- What would have to go wrong operationally for this investment to fail?
- Who will help the company close the gaps we find?
This service is part of our Capital Readiness division. See all Capital Readiness services, or talk to us about your situation.
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.