Every company in every industry needs a comprehensive assessment of their own company’s technical aspects to evaluate the technological capabilities, risks, and opportunities with any partnership, merger, acquisition, or investment to ensure an informed decision. Conducting Technical Due Diligence is one of the most important steps before entering any strategic partnership, merger, acquisition, or investment. It ensures that both the technical and business teams fully understand the technology assets, risks, scalability, and sustainability of a company’s systems.
Firstly, you must clearly define why the due diligence is being performed. Is this for an acquisition, merger, strategic partnership, or venture investment. Include what the business goals (e.g., technology integration, market expansion, cost efficiency) are.
Evaluate the core technology stack and system design including the architecture diagrams, data flow, scalability, and modularity. Ask questions to make sure the architecture is scalable and fault-tolerant, and how difficult is it to migrate or integrate with other systems.
The strength of the tech team often predicts future success. Evaluate the team structure, skills, documentation quality, internal communication tools like GitHub, review development workflows, version control, CI/CD pipelines, QA process and assess agility of how quickly can the team members respond to market or technical challenges. This will help determine the quality of the team.
Evaluating the code quality, documentation standards, and dependency management (sometimes sample-based) reveals the adherence to best practices and design patterns, tests coverage and automation, code maintainability and security vulnerabilities. Also, evaluate cloud usage, APIs, third-party integrations, and data pipelines. You can use modern tools like SonarQube, Snyk, or GitHub Advanced Security often used here.
Cybersecurity and data handling are often major risk factors. We recommend reviewing data governance, privacy compliance (GDPR, CCPA, HIPAA), and access controls; examine incident response plans and vulnerability management; and audit encryption, authentication, and API security.
It is extremely important for the team leaders and employees to understand how the company deploys, scales, and monitors systems including in Infrastructure architecture (cloud/on-prem/hybrid), deployment strategy, automation level, and observability (monitoring, alerting), and evaluate cost efficiency and cloud spending patterns.
We recommend reviewing the product roadmap, feature backlog, and innovation pace, known technical debt areas — what needs urgent refactoring or re-architecture?, and evaluate how tech debt affects future scalability and cost.
Ensure the company legally owns what it claims, verify IP ownership, open-source license compliance, and patent filings, and audit third-party dependencies and contracts for risk exposure.
Summarize risks such as obsolete technologies, overreliance on a single vendor or engineer, and scalability or security bottlenecks. At the same time, highlight opportunities — e.g., reusable frameworks, strong DevOps culture, or innovative proprietary algorithms.
The final report should include:
Companies often employ third-party experts or firms specializing in TDD. Useful tools include:
In today’s fast-moving and technology-driven business landscape, Technical Due Diligence is no longer optional, it is a critical safeguard for informed decision-making. Whether evaluating a partnership, merger, acquisition, or investment, organizations must clearly understand the strengths, risks, and long-term viability of the technology that supports the business. A thorough and structured technical due diligence process reduces uncertainty, uncovers hidden risks, and reveals opportunities for growth, scalability, and innovation.
Sabal Tech delivers Technical Due Diligence as a service by leveraging the latest technologies, proven frameworks, and industry best practices to provide clear, actionable findings. Our experienced engineers and architects combine deep technical expertise with advanced tools to assess architecture, code quality, security, infrastructure, and compliance. By translating complex technical findings into business-ready recommendations, Sabal Tech empowers stakeholders to make confident, data-driven decisions while minimizing risk.
With a comprehensive, objective, and technology-forward approach, Sabal Tech helps organizations protect their investments, accelerate integrations, and build a stronger foundation for future growth, turning technical due diligence into a strategic advantage rather than a hurdle.
