Will the technology platform support the business plan?

How scalable is the business we are about to acquire?

Tech due diligence will give you the answer.

Our offerings

Our offerings

We use technology to evaluate the quality of the technology you are about to acquire.

DueDive’s offering combines tools for automatically scanning and checking the code, with well-defined quality analyses conducted by a team of expert developers with decades of experience. We analyse and evaluate software systems and their ability to scale.

Investors tend to spend significant resources on commercial, financial and legal due diligence. Technical due diligence, however, tends to be less of a concern while the software system is in fact the most critical asset you are about to acquire—the whole value proposition is based on it. Financial and legal due diligence analyse and evaluate the history. They are not sufficient for evaluating the future. We apply a holistic 360 approach, analysing everything from the quality of the existing code to the methodology of software development in the team in question.

What you can expect from DueDive

Every business is unique. Still benchmarking is still relevant. Unit economics in software businesses are often very tangible, from customer lifetime values to customer acquisition costs.

WE DELIVER THE MISSING KPIS, NAMELY TECHNICAL.

Once we have conducted our due diligence, you as our client will receive a full report sufficient for you to qualify your investment from a technology point of view. We claim that the unit economics are not complete without our technical KPIs.

You have the sales and marketing KPIs we provide you with the missing research and development KPIs – critical for you to qualify the business plan.

Areas we analyse

Scalability

How easily can the system be modified to handle a significant increase in number of users or number of transactions. The best scenario is that it's easy to add additional servers or other hardware. In the worst case, core parts of the system have to be rewritten.

Technical debt

Technical debt is the estimated cost for rewriting low quality code and fixing bad design decisions, typically introduced under stressful periods when the development team had to take some shortcuts to be able to meet a deadline. All tech companies have some amount of technical debt, but some more than others.

Product Roadmap

The product roadmap describes how the system will evolve during the upcoming months or years. We look at the roadmap and provide opinions on how feasible it is and how well it's supported by the organisation and system architecture.

Maintainability

The cost of developing and extending the system where some systems are easier to extend than others. A system’s maintainability depends on a lot of different factors but the most important ones are: level of modularisation, readability of the code and its documentation, code cloning and test coverage. We analyse all factors and give a score on the overall maintainability.

Security

Security is important for all types of systems and a loss of data or a security breach can be catastrophic. We analyse all aspects of security: from organisational structures and processes to how security is implemented on the lower code levels.

Team/people

An IT-company’s team and people is a very crucial asset. Without a competent team an IT-company can’t be successful. We evaluate whether a company has the right people for the job and how the company actively work with staff issues and recruiting. We also analyse how dependent the company is on key staff members.

Methodology

Which processes and methods are used for developing new functionality: from requirements elicitation to production planning to test and verification. We especially look at how the company is using modern development principles such as agile development, a rapid and iterative philosophy, to improve efficiency.

Cloud and SaaS transformation

There’s an on-going trend where desktop applications and on-premise solutions are moved to being sold as subscription services and hosted in the cloud. We analyse where in this transformation the company currently is and also how the company is leveraging cloud services in general.

Open source / license risks

Almost all systems use one or multiple third party libraries, i.e., code written by someone else. It’s also easier than ever to find and introduce new third partly libraries into a project. This is typically a good thing as developers don’t have to re-implement commodity features but it also comes with some risks. We analyse third party components to evaluate risks and to make sure that the company honours all licences.

How we do it

First contact and introduction

We travel

Interviews

Analyse code

Flag for risks

Deliver report

Suggest improvements

100 day plan

About us

Complex is our simple.

We have built our offer on research and experience from the real world.

DueDive has a wealth of experience and competence in developing Tech companies. During 10 years of work, we have presented groundbreaking research in software and documentation analysis and Big Data. The team is also behind a company that has been awarded for being one of the fastest growing companies in Sweden. which shows that the team not only represents experience in the past but also knows what it takes for a company to grow in the future. Altogether, we have developed a unique method that gives investors a greater opportunity to evaluate their investments by linking research and technology with business plans and models.

"DueDive provides the missing, and perhaps most important, link in our due diligence. Namely to get our heads around the quality and scalability of the software we are about to invest in"

Leading growth Nordic Equity Fund

Our team

Eddie Freij

CEO

Business developer. Many years of experience managing and developing IT-organisations.

Welf Löwe

Professor – CRO

Scientific director, Computer Science at Linnaeus University. Involved in numerous industrial and development research projects.

Anders Matson

Technology specialist

Experienced system architect and project manager.

Rüdiger Lincke

PhD – CTO

Specialised in software engineering, methodologies and system quality.

Thomas Bernard

Advisor and chairman

Senior financial advisor and business analyst.

Story

We thought, why not holistically analysing software and software companies?

The key to DueDive

Two scientists, a few developers and a business developer all shared a goal of finding the ultimate due diligence of tech companies ensuring that a potential investment is reasonable. They put all their experience together and created DueDive.

For the team behind DueDive it was unclear why a due diligence of an IT centric company was concerned with so many other things and but IT. The IT system and its development were after all where the answer could be found as to whether that company would actually be able to do what the people behind it promised.

Therefore, with the scientific research as a basis and the experience of creating and developing successful IT companies, we created a method for secure tech due diligence, supporting investors and IT companies alike.

Today DueDive has performed a large number of tech due diligence jobs using this method. The focus has been to check the software code of an IT company, but also to connect this with competences of the people and the methods of developing the codes. The result: more secure investments, controllable company development after acquisition and a shattered myth about not being able to foresee how an IT company will develop in the future.

Prof Welf Löwe

You analyse all aspects of businesses, why not the software in software businesses?