Tech Due Diligence

Experienced diligence advisory services + tools guided by your investment thesis to sharpen decision-making for any tech investment.

Mitigate risk in any deal scenario

The competitive landscape is quickly evolving through AI — and we need to understand the risks and opportunities

We need to know that the product and team can deliver on growth assumptions in the investment strategy

This is a critical platform play, and we need an in-depth assessment across AI/ML, IoT, security, data architecture and other topics related to the tech landscape

We need to understand any urgent security risks and develop a plan to prioritize and remediate — whether before close or immediately after

We have our own in-house diligence team, but we need additional expertise on AI, IT, security or product to complement our capabilities for some targets

We need to assess the target's enterprise IT applications, infrastructure and people to understand the impact for a combined entity

It's early in the process, and we need a sanity check for any red flags

This is a highly competitive process, and we need a pre-LOI technical review to quickly assess risk and opportunity

We're working with a small team at the target, and our time with them is extremely limited

Tech due diligence aligned to the deal dynamics

Crosslake tailors the process to deliver the reporting you need, whether it’s a two-page risk analysis or a comprehensive assessment of the target’s technology and product-market fit.

Access to management

Pre- and post-exclusivity

Deadline

Technical impact on investment

Complexity

Budget

We do diligence differently

Crosslake delivers tech due diligence at deal speed. Our seasoned practitioners leverage a consistent framework and proprietary TechIndicators^® to quickly put findings into context for the investment strategy and audience. Each diligence is highly tailored to reflect the company type, industry, level of access and speed of the deal. Diligence types include:

Software and tech-enabled diligence: Comprehensive tech due diligence. Typical core focus areas include infrastructure, SDLC, information security, organization, business continuity, software architecture, customer support, product management and enterprise systems. Exact mix and depth of topics varies based on industry, target and investment strategy.

AI diligence: Surfaces signals of AI disruption across industries, solution types and AI modalities to assess risk and evaluate product defensibility.

IT diligence: Tech due diligence of critical business systems and infrastructure. Focused on infrastructure, information security, organization and enterprise systems.

Product diligence: Strategic product insights to inform growth-stage investments. Focused on maturity of product-market fit, competitiveness, roadmap and organizational maturity and readiness.

Security diligence: Fast security insights to support in-house tech diligence. Focused on InfoSec, business continuity and pen testing.

TechIndicators^® redefine the diligence report

Objective measures + meaningful insights

Our best-in-class reports leverage proprietary TechIndicators®, based on data from more than 6,000 prior technology M&A transactions, to benchmark the target against similarly-sized companies within the same industry.

Each report is customized to include tracks specific to the target and your investment strategy. Multiple formats synthesize information into relevant views for the deal partner, operating partner and investment committee.

RESULTS

How do you recognize a standout?

Private equity investor, Integrity Growth Partners (IGP), was looking for deep technical insights into Eon Health’s patient management software.

Our team leveraged proprietary data from thousands of prior tech investments to assess the performance of Eon’s cloud-based platform against HealthTech benchmarks for information security, business continuity, software architecture and other key areas.

With Crosslake Techindicator^® scores of 97 for infrastructure, 97 for information security and 92 for information technology (compared to industry averages in the low 70s) IGP felt confident leading a $16M investment to enable accelerated growth.

DOWNLOAD CASE STUDY >

Tech Due Diligence

Mitigate risk in any deal scenario