Reliable investment valuations
Due Diligences
Reliable investment valuations
With over 360 successfully completed due diligences, we are a reliable partner for transactions in the digital environment. Our due diligences include all relevant commercial and technical aspects that can impact the viability and value of an investment, including Commercial DD, Tech DD, IT DD, Product DD and Data DD.You can find a complete overview of our completed DDs on our deal tracker.
Our Commercial Due Diligence assesses the relevant commercial aspects of the target company and the corresponding market and competition. We describe the business model, assess the value chain, provide insights into the market and relevant competitors, and analyze the customer’s structure, their product portfolio, as well as their marketing and sales strategy. By doing so, we place a special focus on identifying potential risks in the market, competition, and business model. Based on the identified risks, we propose concrete actions for the post-acquisition phase and prioritize necessary changes to the business model, value chain or organization.
Digital business models often rely on self-developed software or hardware throughout their value chains. Prior to making an investment, it is essential to assess the quality of this core asset and identify potential risks. Our Technology Due Diligence takes a comprehensive view of the target company’s technology. Depending on the investment hypothesis, this includes evaluating future maintenance requirements, the flexibility to incorporate new features, the planned migration of software solutions to the cloud or the anticipated pace of future development. We provide an overview of the current state, an assessment of the future-readiness and derive recommendations and action plans to support the business plan. This way, we assist our clients in considering the right amount of technology investments in the business plan and potentially improve the purchase price or specific deal terms.
Stable and future-proof IT systems are the backbone of any company’s value chain. A thorough examination of the IT is therefore crucial prior to making an investment. Our IT Due Diligence covers all relevant aspects of the target company’s IT, including strategy and digital capabilities, application and infrastructure landscape, organization and governance, contracts and costs, as well as IT risks and security. Our analysis ranges from Initial Insights Dossiers and Red Flag Reports to comprehensive, bankable Due Diligence Reports. All done in a smooth process creating trust and good-will by a small and easy-to-work-with team with decades of experience.
The product portfolio is a key selection criterion for software and hardware investments. We help investors assess the competitive strength of a target company’s products. We compare the product functionalities with market requirements and competitors and evaluate the product quality from different perspectives – including usability, scalability, integration capabilities, internationalization and implementation of security requirements.
How can the target company use its data to optimize current business operations – or even to implement new business models? We answer this question in our Data Due Diligence. To do so, we match existing and future data sources with possible use cases and monetization scenarios. In a second step, we analyze the data structure and quality to assess whether this data can be used in a meaningful way to gather information from it, e.g. for an evaluation by data management solutions or machine learning algorithms.
Daniel Krzyzak
Partner & Managing Director
Christoph Nichau
Partner & Managing Director
