“An investment in knowledge pays the best interest.” – Benjamin Franklin

Are you looking to buy, or invest in a company that has significant technical intellectual property?

Investing in technical, software, product companies goes much further than the financials due-diligence and can include the following areas:

  • Technology assessment (languages, 3rd party products, open source, engineer availability)
  • Porting & modernisation (can older components be migrated)
  • Intellectual property ownership (are there any risks through use of contractors, 3rd party development companies, claims from competitors or clients, patent infringements)
  • Code quality & maintenability
  • Key staff
  • Operational procedures & use of quality management system (QMS), code management systems (CMS)
  • Contractual obligations (releases per year, end-of-life, replacement policies)
  • ESCROW compliance
  • Code management & versioning
  • Support procedures and liabilities
  • Client issues, defects/bugs
  • Roadmap/projects ongoing enhancement commitments
  • Strategy & ability to deliver on strategy, such as geographical expansion/localisation/internationalisation
  • Market opportunity & competitors
  • Product documentation
  • Partnerships & distributors
  • Staff assessment (key men, skills, locations)
  • Pipeline/sales assessment
  • SWOT analysis
  • Compliance, GDPR, SOX, PCI…

The 3rd Wave is able to provide end-to-end due-diligence, though it doesn’t stop there.  We will also provide advice & guidance on potential improvements to quality, cost base, performance, taking into consideration your post-acquisition goals.

Identifying concerns before acquisition will help you develop & cost a viable transitioning plan, accurately price the acquisition and gain insight into unforeseen opportunity.