Case study: technical due diligence of a software start-up |
Abstract
Technical due diligence of a software start-up
Challenge
Our client was considering purchasing an equity stake in a software start-up and wished Deloitte to undertake a technical due diligence of the start-up.
The scope of the due diligence included:
- The software platform
- The technical capability of the organisation and its ability to scale
- Intellectual property rights
Approach
Through desk-based research, data requests, a series of workshops and follow-up meetings, Deloitte reviewed the software platform from the perspective of functionality, technologies used, flexibility, performance and ability to scale.
In terms of the technical capability of the organisation, Deloitte considered the organisation structure and operating model, technical and management capability of staff, succession plans and the ability of the current operating model to scale to meet growth objectives.
Since part of the software platform was acquired from another organisation, Deloitte also undertook a review of the legal contracts in place to ensure that intellectual property rights were appropriately transferred to the start-up.
Solution
We produced and submitted a technical due diligence report detailing our findings to the client's board.
The report was a key input to the client’s decision making process regarding whether or not to proceed with acquiring an equity stake in the start-up.
