Technical due diligence report: an anonymised sample

A technical due diligence report tells a buyer or an investor, in writing, whether a software product can carry the growth they are paying for, what is at risk, and what it will cost to fix. This is an anonymised sample of ours. Twenty-four pages, names masked, structured exactly the way a real report is.

Most buyers have never seen one of these before they pay for one. You should know what you are buying.

What is in the report

  • A verdict on page one: proceed, proceed with conditions, or walk away, with the reasons in plain language.
  • A scorecard of ten areas, from architecture and security to data protection and business continuity, each marked as a condition of signing, a price adjuster or a post-close plan.
  • One page per finding: what we found, why it matters to the buyer, what we recommend, the effort in person-weeks, and how confident we are, with the evidence behind it.
  • A technical debt register in work, not adjectives, with a total you can put into the deal.
  • The first 100 days after close, and how the company joins your group.
  • What it means for price, escrow or earn-out, and the open items to settle with the seller before you sign.

The scorecard from the sample

AreaRatingWhat we foundEffort
ArchitectureNeeds workHolds about 2.5 times today’s peak, the case needs 314 to 20 pw
Code and testsNeeds work11% test coverage, none on billing, one live rounding bug6 to 8 pw
SecurityAct before closeWorking secrets in Git history, no MFA on two admin accounts2 pw
DeliveryNeeds workManual releases, one in four needs a hotfix4 pw
Team and key peopleAct before closeOne engineer wrote 68% of billing and scheduling3 to 4 pw
Licences and IPAct before closeAGPL library in customer facing invoices2 to 3 pw
Cloud costSoundAbout €5,000 a month spent on idle resources1 to 2 pw
The AI featureNeeds workPersonal data sent to a US model endpoint, no evaluation3 to 5 pw
Data protectionNeeds workProcessing records from 2021, five agreements missing2 to 3 pw
Business continuityNeeds workBackups run, a restore has never been tested2 to 3 pw

Total: 39 to 54 person-weeks, about €180,000 to €250,000 of remediation to price into the deal.

One finding, in full

Finding 06 · Licences and IP · Act before close

We scanned 1,140 open source dependencies. 1,128 are under permissive licences and 11 under weak copyleft licences such as LGPL and MPL, which are fine as they are used here. One is under AGPL-3.0: the PDF library that generates the invoices customers download. AGPL requires whoever offers the software to users over a network to make its source available. Whether that reaches into the application around the library depends on how the two are combined, which is a question for counsel.

The AGPL issue is exactly what a buyer's lawyers find late and use to reprice. Replace the library or buy the vendor's commercial licence before signing.

Questions buyers ask

What does a technical due diligence report include?

A verdict, a scorecard across ten areas from architecture to business continuity, one page per finding with the cost to fix and the evidence behind it, a debt register, a 100 day plan and the open items to settle before signing.

How long is a real report, and how long does it take?

Thirty to forty pages, delivered in two to four weeks. If the deal moves faster, the five day Technology Health Check covers the riskiest areas in a shorter report.

How much does technical due diligence cost?

€18,000 to €35,000 for the full report, fixed fee. The Technology Health Check is €4,500 to €6,500.

Is this a real client report?

It is an anonymised sample. Names are masked and details are illustrative, so nobody can be identified from it. The structure, depth and tone are exactly what you receive.

What happens after we read it?

You decide. If you want us to fix what we found, the fee comes off the first invoice on projects above €50,000. If you take the report to another supplier, that is a fair outcome too.

Consulting

Have a deal coming? We can write this for yours.

Tell us about the deal and you get a written read on it within three working days, free.