Trillium’s due diligence framework is used assess the stability and validity of the acquired company’s technology capabilities.
The key to any due diligence is to first confirm the goals and assumptions for company that is being acquired are valid. The objective for performing a due diligence is to determine the issues and implications that exist when the purchase is made and to determine if there are any financial consequences associated with the outcome of the due diligence.
One key objective for a due diligence includes understanding the following key technology areas for the company being acquired:
- Costs to operate and support
- Support methods and stability
Another key objective for a due diligence is to gain an understanding of the technology organization for the company being acquired:
- Management team capabilities
- Staff capabilities
- Strengths and weaknesses
- Key players
- Individual “flight risks”
Due Diligence Planning
The initial phase of a due diligence review consists of identifying the areas of interest for the Due Diligence review. After the scope is documented, the next step is to develop the plan for completing the remainder of the due diligence activities.
This phase is focused on developing a plan of action for completing the onsite discovery. This discovery includes both the review of available documentation as well as the review of the organization performing the development, execution and operations processes that an organization has in place. A review is done of the technical environment to confirm software and hardware versions. In addition, the company’s controls are reviewed to identify any risks that may exist.
The company’s staff is also interviewed to confirm both their roles and responsibilities and to evaluate their overall capabilities to perform their role.
Any available succession plans are also reviewed to determine the impact of losing “key” individuals.
Analysis is done on the data that is gathered during the on-site discovery and data is correlated in the specific areas of interest for the due diligence. This includes determining the financials associated with operating the environment. Risks are documented based on the results of the discovery and the analysis against best practices and industry standards.
Complete Due Diligence Report
The report is then developed that summarizes the findings of the due diligence activities. This report is then provided to executive management.