Technical Due Diligence
Gain clarity with our technical due diligence for IT companies: we examine team, processes, technology, and code, so you know exactly what you're investing in.
No-obligation consultation on technical due diligence, integration, and value creation.
Identify risks, secure tech investments
More than just code metrics
As a boutique advisory firm specializing in technical due diligence for software businesses, we provide private equity and venture capital investors with actionable transparency across every technical dimension of a target company. Our experience demonstrates that reviewing code metrics alone is never enough: we analyze architecture, codebase, engineering teams, workflows, and the strategic business context. This enables us to identify critical deal-breakers early and protect your investment.
Our Core Areas
Four areas, one holistic picture: we assess the target company along every dimension that matters for your investment decision.
Team & Skills
The development team is one of the most important assets of a software company. We assess structure, capabilities and risks, and benchmark existing skills against the requirements of the product roadmap.
Processes
Structured processes enable fast and efficient development and maintenance. We examine the entire development process, from project management and software testing to deployment and handling of customer feedback.
Technology & Tools
Technological decisions are long-term, changing them always comes at great effort. For a holistic view we assess the technology stack, external dependencies, frameworks, libraries and tooling.
Architecture & Code
The software is the actual product, decisive in every late-stage due diligence. With a mixed approach of qualitative and quantitative methods we assess the code base and architecture.
Our Process
Kickoff & Scoping
We gain a deep understanding of your investment goals and the target's technological potential, and prepare a comprehensive information request list (IRL) and workshop agenda.
Analysis & Interviews
Our team reviews all available documents, data and systems and talks to the key people, from the CTO and development leads to key engineers.
First findings after ~4 days
After about four days we discuss the critical findings with you in a call. You decide what you want to know more about, we keep you updated on all insights.
Bank-grade report
We translate the results from technical jargon into clear business language: a bank-grade report with actionable recommendations and a roadmap highlighting value creation opportunities in the IT landscape.
What does a tech due diligence report look like?
The report is a comprehensive analysis of all technical aspects of the target company and your roadmap to understanding its infrastructure and capabilities. It shows strengths and weaknesses alike, and is written to be understandable without deep technical knowledge, ideal for the investment committee or a bank. See for yourself: our sample report is based on a fictitious software company developing an ERP system and follows our proven approach.
- Executive summary in business language
- Detailed analysis of team, processes, technology & code
- Risk matrix with prioritized findings
- Actionable recommendations & action plan
- Value creation roadmap for the post-merger phase
Why BitFlow
Experience, not just metrics
Around 80% of software start-ups hit a low point within three years. We know automated code metrics alone are not enough, soft factors and the target's context are what matters.
Agility is our top priority
Speed without quality loss: after about four days we discuss critical findings with you, a few days later you receive the detailed, bank-grade report for your investment committee.
Actionable recommendations
Whether investor or entrepreneur: our results deliver concrete tasks, insights and recommendations for every company stage, increasing your investment or exit readiness without detours.
Deep technical expertise
Blockchain, artificial intelligence or IoT: we bring in industry experts who have seen it all, backed by a network of over 2,000 deep tech experts.
Frequently Asked Questions
Why is it important to understand the technical side of a software company?
Digital transformation shows how crucial a company's underlying technology is: as fast as companies rise through technological advantages, others fall behind. Only a holistic assessment of development team, processes, technology and code enables investors to judge the technological side and find a plausible price.
How long does a technical due diligence project take?
The duration strongly depends on the target company, indicators include lines of code, team size, company maturity or the breadth of the product portfolio. As a rough guide, our tech due diligence for a target with around 20 developers takes about 12–15 days.
How do you obtain the required information?
We combine qualitative and quantitative methods: interviews with key people such as CTOs and CIOs, product reviews, assessments of system architecture and code quality, and benchmarking the company vision against the product roadmap. Quantitatively we analyze metrics, for example the share of code written by one person to detect key person risks.
What is the difference between buy-side and sell-side tech due diligence?
We apply our proven tech due diligence framework for both sides. In a sell-side (vendor) due diligence we first simulate a real audit, discuss the findings with the CTO and create an action plan, from updated documentation to introducing future-proof technologies. This prepares software companies specifically for investor scrutiny.
What happens after the report?
Our results do not end with the report: we develop a comprehensive roadmap identifying value creation opportunities in the IT landscape and, on request, support the implementation of measures after closing.
Sample Report Highlights
Processes
Structured processes are the foundation of a high-performing engineering organization. We evaluate project management methodologies, development workflows, CI/CD pipelines, automated testing, release management, and feedback loops to ensure high velocity and reliable delivery quality.
Technology & Tools
We conduct an in-depth audit of the technology stack, programming languages, third-party frameworks, and libraries. We verify that dependencies are actively maintained, secure, and compliant with open-source licenses (e.g. GPL copyleft obligations), ensuring the platform remains resilient and scalable.
Architecture & Code
Architecture and codebase form the backbone of any software company. We evaluate architectural design patterns, modularity, maintainability, and code metrics such as cyclomatic complexity, duplication, and test coverage. A well-structured, scalable codebase is essential for sustainable growth.
Team & Skills
The engineering team is the primary value driver of software development. We analyze organizational structure, developer retention, team productivity, and key-person dependencies, benchmarking current team capabilities against the future product roadmap.
Ready for the next step?
Schedule an introductory call to learn how we can support your team, from initial assessment through to implementation.
Your Report
You receive a structured, decision-ready report with clear risk assessments.
- Executive Summary
- Technical Detail Analysis
- Risk Matrix
- Recommendations & Actions
- Integration Roadmap
No-obligation consultation on technical due diligence, integration, and value creation.
Request a Sample Report
Review an excerpt from our sample report – free of charge and with no obligation.