technical due diligence (TDD).
Due diligence (DD) is performed in order to analyse and evaluate a company before a potential acquisition. Semcon can offer customers technical due diligence (TDD) in multiple areas. The aim of a TDD is to evaluate a company from a technical perspective to investigate potential risks and whether the products and services meet the standards the company claims they have.
For a technical due diligence investigation to suceed, it is important to have senior expertise in the specific field in which the company in question operates. Semcon is an independent actor and can assemble a team of experts to review a company’s products and services based on a number of different parameters.
What is unique about Semcon is that we have both the breadth and the depth for this type of complex assignment.
Technical due diligence that goes deep
One example of an area in which Semcon has extensive experience is product development. During a technical evaluation, Semcon’s expert team adopts a thorough approach, asking questions such as:
- What does the product development process entail?
- How complex is the product?
- How does the product compare with those of competitors?
- How many engineers has the company employed, and in which areas?
- What certifications does the company have?
- How do they perform their risk analyses?
- And so on.
“Technical DD is primarily about performing an in-depth analysis of the technology and the product’s degree of maturity to determine time to market and the potential to scale up production volumes,” says Johanna Stenfeldt, Division Manager at Semcon in Gothenburg. “This requires a cross-functional expert team skilled in both product and production development.”
Independent partners for technical due diligence
Effective TDD can provide many benefits, including the shortening of acquisition processes. But a lot of companies don’t have enough engineers with the specialist expertise needed to perform such a comprehensive technical evaluation.
The more complex a solution a company produces, the more important it is that those investigating the company have the right type of senior expertise.
Semcon works based on a proven process for technical due diligence and the work results in a report presenting all the conclusions from the evaluation. Since the analysis takes place outside the own company, the risk of spreading that an acquisition process has started is minimized, and with a signed NDA, confidentiality is 100%.
