What is Technology Due Diligence (IT due diligence)
Technology Due Diligence is a thorough analysis of a company’s technological landscape, aimed at assessing its IT infrastructure, systems architecture, software development and acquisition processes, as well as its security posture. It plays a key role in identifying technological risk prior to an investment, acquisition or merger.
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Who needs IT due diligence?
Investors (VCs, PE firms, business angels) seeking to verify that the technology behind a potential investment is robust and scalable. Buyers in M&A processes who need an assessment of a target company’s technology assets. Startups and scale-ups looking to understand their own technological strengths and weaknesses before approaching investors.
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The benefits of IT due diligence
Risk reduction by identifying technology and process weaknesses prior to investment or acquisition. Cost optimisation by avoiding hidden costs associated with outdated infrastructure or inefficient IT management. Improved security by detecting potential gaps in security and regulatory compliance.
Strategic insight to help optimise technology and support future business development.
Why conduct IT due diligence?
Technology is the backbone of most businesses today. Without thorough verification, you risk:
- investing in a company with outdated or unscalable technology
- problems when integrating acquired IT systems
- high costs of upgrading neglected technological solutions
- experiencing data security breaches or regulatory non-compliance
Scope of technology due diligence services
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An IT due diligence audit provides a comprehensive assessment across key areas, including:
– IT strategy
– organisational structure and competencies within the IT team
– technologies in use
– IT infrastructure and systems
– evaluation of IT service providers
– IT compliance
– system development and acquisition processes
– cybersecurity and business continuity measures
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Preparation of the due diligence report:
The report provides reliable, comprehensive information about the entity being assessed, helping to minimise potential investment risks.
It highlights significant issues that could impact the entity’s valuation process, offering valuable insights into its approach to IT governance, information security, business continuity and IT compliance.
Service delivery process
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Initial analysis
understanding the company’s business model and its technology ecosystem.
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IT architecture assessment
review of infrastructure, source code, software development processes and tools.
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Cybersecurity and compliance
identification of security risks and verification of compliance with key regulations (e.g. GDPR, ISO, NIS2, DORA).
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Team and process assessment
evaluation of the IT team’s competencies, project management practices and overall operational effectiveness.
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Final report and recommendations
a comprehensive summary outlining the audit’s key findings, identified risks and recommendations for optimisation and next steps.
understanding the company’s business model and its technology ecosystem.
Why Grant Thornton?
We support our clients at all stages of building a secure business. We know how to make IT security effective and simple. It is not just our job, it is our passion. And that is why we provide the highest level of service.
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500+
projects delivered across many sectors and for organisations of all sizes
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300+
clients satisfied with our information security and cybersecurity support
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60
people on our team of experts in the fields of IT, security and business continuity