Technical Due Diligence Template

# Technical Due Diligence Report

**Target Company:** [Company Name]
**Engagement Type:** [Acquisition / Investment / Partnership]
**Assessment Period:** [Dates]
**Prepared By:** [Name/Firm]
**Report Date:** [Date]
**Confidentiality:** [Classification]

---

## Executive Summary

### Overall Assessment

**Technical Health Score:** [1-10] / 10

**Recommendation:** [Proceed / Proceed with Conditions / Do Not Proceed]

### Key Findings

**Strengths:**
1. [Strength 1]
2. [Strength 2]
3. [Strength 3]

**Concerns:**
1. [Concern 1 - severity level]
2. [Concern 2 - severity level]
3. [Concern 3 - severity level]

**Deal Breakers Identified:** [None / List any]

### Risk Summary

| Category | Risk Level | Key Issues |
|----------|------------|------------|
| Architecture | 🟢🟡🔴 | [Summary] |
| Code Quality | 🟢🟡🔴 | [Summary] |
| Security | 🟢🟡🔴 | [Summary] |
| Scalability | 🟢🟡🔴 | [Summary] |
| Team | 🟢🟡🔴 | [Summary] |
| Technical Debt | 🟢🟡🔴 | [Summary] |
| IP/Legal | 🟢🟡🔴 | [Summary] |

### Estimated Remediation Costs

| Item | Estimate | Timeline |
|------|----------|----------|
| [Item 1] | [$] | [Duration] |
| [Item 2] | [$] | [Duration] |
| **Total** | [$] | |

---

## Company Overview

### Product and Technology

**Product Description:**
[What the company builds and sells]

**Technology Stack:**
- Frontend: [Technologies]
- Backend: [Technologies]
- Database: [Technologies]
- Infrastructure: [Cloud/On-prem, providers]
- Key third-party services: [Services]

**Product Metrics:**
| Metric | Value | Notes |
|--------|-------|-------|
| Monthly Active Users | [#] | |
| Daily API calls | [#] | |
| Data volume | [Size] | |
| Uptime (last 12 months) | [%] | |

### Team Overview

| Role | Count | Notes |
|------|-------|-------|
| Engineering Total | [#] | |
| - Backend | [#] | |
| - Frontend | [#] | |
| - DevOps/SRE | [#] | |
| - QA | [#] | |
| Product | [#] | |
| Design | [#] | |
| **Total Tech Team** | [#] | |

---

## Architecture Assessment

### System Architecture

**Architecture Diagram:**
[Include or reference architecture diagram]

**Architecture Pattern:** [Monolith / Microservices / Serverless / Hybrid]

**Key Components:**
| Component | Technology | Purpose | Health |
|-----------|------------|---------|--------|
| [Component 1] | [Tech] | [Purpose] | 🟢🟡🔴 |
| [Component 2] | [Tech] | [Purpose] | 🟢🟡🔴 |
| [Component 3] | [Tech] | [Purpose] | 🟢🟡🔴 |

### Architecture Assessment

| Criterion | Score (1-5) | Notes |
|-----------|-------------|-------|
| Modularity | [Score] | [Notes] |
| Scalability | [Score] | [Notes] |
| Reliability | [Score] | [Notes] |
| Maintainability | [Score] | [Notes] |
| Observability | [Score] | [Notes] |
| Security design | [Score] | [Notes] |

**Architecture Strengths:**
- [Strength 1]
- [Strength 2]

**Architecture Concerns:**
- [Concern 1]
- [Concern 2]

**Recommendations:**
- [Recommendation 1]
- [Recommendation 2]

---

## Code Quality Assessment

### Repository Structure

| Repository | Language | Lines of Code | Last Commit | Status |
|------------|----------|---------------|-------------|--------|
| [Repo 1] | [Lang] | [LOC] | [Date] | Active/Stale |
| [Repo 2] | [Lang] | [LOC] | [Date] | Active/Stale |

### Code Metrics

| Metric | Value | Benchmark | Assessment |
|--------|-------|-----------|------------|
| Test coverage | [%] | >80% good | 🟢🟡🔴 |
| Code duplication | [%] | <5% good | 🟢🟡🔴 |
| Cyclomatic complexity | [Avg] | <10 good | 🟢🟡🔴 |
| Documentation | [Score] | | 🟢🟡🔴 |
| Technical debt ratio | [%] | <5% good | 🟢🟡🔴 |

### Development Practices

| Practice | Status | Notes |
|----------|--------|-------|
| Version control | [Git/Other] | |
| Branching strategy | [Strategy] | |
| Code review | [Yes/No] | [Coverage] |
| CI/CD pipeline | [Yes/No] | [Maturity] |
| Automated testing | [Yes/No] | [Coverage] |
| Documentation | [Level] | |
| Coding standards | [Yes/No] | |

### Code Quality Findings

**Strengths:**
- [Strength 1]
- [Strength 2]

**Concerns:**
- [Concern 1]
- [Concern 2]

**Technical Debt Identified:**
| Item | Severity | Estimated Effort | Impact |
|------|----------|------------------|--------|
| [Debt 1] | H/M/L | [Effort] | [Impact] |
| [Debt 2] | H/M/L | [Effort] | [Impact] |

---

## Security Assessment

### Security Posture

| Area | Status | Notes |
|------|--------|-------|
| Authentication | [Implementation] | 🟢🟡🔴 |
| Authorization | [Implementation] | 🟢🟡🔴 |
| Data encryption (transit) | [Yes/No] | 🟢🟡🔴 |
| Data encryption (rest) | [Yes/No] | 🟢🟡🔴 |
| Secrets management | [Method] | 🟢🟡🔴 |
| Dependency scanning | [Yes/No] | 🟢🟡🔴 |
| Penetration testing | [Frequency] | 🟢🟡🔴 |
| Security monitoring | [Tools] | 🟢🟡🔴 |

### Compliance

| Certification/Standard | Status | Expiry |
|------------------------|--------|--------|
| SOC 2 Type II | [Yes/No/In Progress] | [Date] |
| ISO 27001 | [Yes/No/In Progress] | [Date] |
| GDPR | [Compliant/Partial/No] | |
| HIPAA | [Compliant/Partial/No/N/A] | |
| PCI DSS | [Compliant/Partial/No/N/A] | |

### Security Findings

**Critical Issues:**
- [Issue 1 - immediate remediation required]

**High-Priority Issues:**
- [Issue 1]
- [Issue 2]

**Medium-Priority Issues:**
- [Issue 1]

**Recommendations:**
- [Recommendation 1]
- [Recommendation 2]

---

## Scalability Assessment

### Current Scale

| Metric | Current | Peak | Capacity |
|--------|---------|------|----------|
| Requests/second | [#] | [#] | [#] |
| Concurrent users | [#] | [#] | [#] |
| Data storage | [Size] | [Growth/month] | [Limit] |
| Database size | [Size] | [Growth/month] | [Limit] |

### Scalability Analysis

| Component | Horizontal Scale | Vertical Scale | Bottleneck Risk |
|-----------|------------------|----------------|-----------------|
| Web tier | [Yes/No] | [Limit] | 🟢🟡🔴 |
| Application tier | [Yes/No] | [Limit] | 🟢🟡🔴 |
| Database | [Yes/No] | [Limit] | 🟢🟡🔴 |
| Cache | [Yes/No] | [Limit] | 🟢🟡🔴 |
| Message queue | [Yes/No] | [Limit] | 🟢🟡🔴 |

### Scalability Assessment

**Current headroom:** [X]x before architectural changes needed

**Scaling path:**
1. [First scaling step]
2. [Second scaling step]
3. [Major architectural change needed at Nx]

**Concerns:**
- [Concern 1]
- [Concern 2]

---

## Infrastructure Assessment

### Infrastructure Overview

**Hosting:** [Cloud provider(s) / On-premise / Hybrid]

**Regions/Availability:**
| Region | Services | DR Capability |
|--------|----------|---------------|
| [Region 1] | [Services] | [Yes/No] |
| [Region 2] | [Services] | [Yes/No] |

### Infrastructure Health

| Area | Status | Notes |
|------|--------|-------|
| Infrastructure as Code | [Yes/No/Partial] | [Tool] |
| Environment parity | [High/Med/Low] | |
| Deployment automation | [Yes/No/Partial] | |
| Monitoring coverage | [%] | [Tool] |
| Alerting | [Maturity] | |
| Backup strategy | [Description] | |
| Disaster recovery | [RTO/RPO] | |

### Cost Analysis

| Category | Monthly Cost | % of Total | Optimization Potential |
|----------|--------------|------------|------------------------|
| Compute | [$] | [%] | 🟢🟡🔴 |
| Database | [$] | [%] | 🟢🟡🔴 |
| Storage | [$] | [%] | 🟢🟡🔴 |
| Network | [$] | [%] | 🟢🟡🔴 |
| Other | [$] | [%] | 🟢🟡🔴 |
| **Total** | [$] | 100% | |

**Cost per user/transaction:** [$X per MAU / $Y per 1000 requests]

---

## Team Assessment

### Team Composition

| Role | Count | Avg Tenure | Key Person Risk |
|------|-------|------------|-----------------|
| [Role 1] | [#] | [Years] | 🟢🟡🔴 |
| [Role 2] | [#] | [Years] | 🟢🟡🔴 |
| [Role 3] | [#] | [Years] | 🟢🟡🔴 |

### Key Personnel

| Name | Role | Tenure | Criticality | Retention Risk |
|------|------|--------|-------------|----------------|
| [Name] | [Role] | [Years] | Critical/Important | 🟢🟡🔴 |
| [Name] | [Role] | [Years] | Critical/Important | 🟢🟡🔴 |

### Team Assessment

| Criterion | Score (1-5) | Notes |
|-----------|-------------|-------|
| Technical skills | [Score] | |
| Domain expertise | [Score] | |
| Process maturity | [Score] | |
| Documentation | [Score] | |
| Knowledge distribution | [Score] | |
| Retention likelihood | [Score] | |

### Team Risks

- [Risk 1]
- [Risk 2]

### Retention Recommendations

- [Recommendation 1]
- [Recommendation 2]

---

## Intellectual Property Assessment

### IP Inventory

| Asset | Type | Protection | Status |
|-------|------|------------|--------|
| [Core platform] | Software | Copyright/Trade secret | Owned |
| [Patent X] | Patent | Patent #[Number] | Filed/Granted |
| [Trademark] | Trademark | Reg #[Number] | Registered |
| [Domain] | Domain | Registration | Owned |

### Open Source Analysis

**Open source usage:**
| Category | Count | License Types |
|----------|-------|---------------|
| Dependencies | [#] | [MIT, Apache, GPL, etc.] |
| Copyleft licenses | [#] | [GPL, AGPL, etc.] |
| Commercial licenses | [#] | [List] |

**License compliance concerns:**
- [Concern 1 if any]
- [Concern 2 if any]

### IP Risks

| Risk | Severity | Notes |
|------|----------|-------|
| [IP risk 1] | H/M/L | |
| [IP risk 2] | H/M/L | |

---

## Data Assessment

### Data Inventory

| Data Type | Volume | Sensitivity | Location | Retention |
|-----------|--------|-------------|----------|-----------|
| User data | [Size] | [PII/Sensitive/Public] | [Location] | [Policy] |
| Transaction data | [Size] | [Level] | [Location] | [Policy] |
| Analytics | [Size] | [Level] | [Location] | [Policy] |

### Data Quality

| Criterion | Score (1-5) | Notes |
|-----------|-------------|-------|
| Completeness | [Score] | |
| Accuracy | [Score] | |
| Consistency | [Score] | |
| Timeliness | [Score] | |

### Data Governance

| Area | Status | Notes |
|------|--------|-------|
| Data catalog | [Yes/No] | |
| Data lineage | [Yes/No] | |
| Access controls | [Maturity] | |
| Backup/recovery | [Strategy] | |
| Data retention | [Policy] | |

---

## Integration Assessment

### Integration Complexity

**If acquiring:**

| Integration Area | Complexity | Effort Estimate | Priority |
|------------------|------------|-----------------|----------|
| User/account merge | [H/M/L] | [Weeks] | [P1/P2/P3] |
| Data migration | [H/M/L] | [Weeks] | [P1/P2/P3] |
| System integration | [H/M/L] | [Weeks] | [P1/P2/P3] |
| Process alignment | [H/M/L] | [Weeks] | [P1/P2/P3] |
| Team integration | [H/M/L] | [Weeks] | [P1/P2/P3] |

### Integration Risks

- [Risk 1]
- [Risk 2]

### Integration Recommendations

- [Recommendation 1]
- [Recommendation 2]

---

## Risk Summary

### Risk Matrix

| Risk | Likelihood | Impact | Severity | Mitigation |
|------|------------|--------|----------|------------|
| [Risk 1] | H/M/L | H/M/L | Critical/High/Med/Low | [Strategy] |
| [Risk 2] | H/M/L | H/M/L | Critical/High/Med/Low | [Strategy] |
| [Risk 3] | H/M/L | H/M/L | Critical/High/Med/Low | [Strategy] |

### Deal Implications

**Valuation considerations:**
- [Consideration 1]
- [Consideration 2]

**Deal terms recommendations:**
- [Term recommendation 1]
- [Term recommendation 2]

**Post-close requirements:**
- [Requirement 1]
- [Requirement 2]

---

## Recommendations

### Immediate Actions (Pre-Close)

1. [Action 1]
2. [Action 2]

### Short-Term Actions (0-90 Days Post-Close)

1. [Action 1]
2. [Action 2]

### Medium-Term Actions (90-365 Days Post-Close)

1. [Action 1]
2. [Action 2]

### Investment Required

| Category | Estimate | Timeline |
|----------|----------|----------|
| Security remediation | [$] | [Duration] |
| Technical debt | [$] | [Duration] |
| Infrastructure | [$] | [Duration] |
| Team/hiring | [$] | [Duration] |
| **Total** | [$] | |

---

## Appendix

### Documents Reviewed

- [Document 1]
- [Document 2]
- [Document 3]

### Interviews Conducted

| Name | Role | Date | Topics |
|------|------|------|--------|
| [Name] | [Role] | [Date] | [Topics] |

### Tools Used

- [Tool 1 - purpose]
- [Tool 2 - purpose]

### Limitations

- [Limitation 1]
- [Limitation 2]

## Technical Due Diligence Checklist

### Documentation Request

- [ ] Architecture diagrams
- [ ] System documentation
- [ ] API documentation
- [ ] Deployment documentation
- [ ] Incident history (12 months)
- [ ] Security audit reports
- [ ] Compliance certifications
- [ ] Open source license inventory
- [ ] Vendor contracts
- [ ] Team org chart
- [ ] Technology roadmap

### Code Access

- [ ] Read access to repositories
- [ ] Ability to run code analysis tools
- [ ] Access to CI/CD pipelines
- [ ] Access to monitoring dashboards

### Interviews

- [ ] CTO/VP Engineering
- [ ] Engineering leads
- [ ] Key individual contributors
- [ ] DevOps/SRE team
- [ ] Security lead
- [ ] Product manager

### Assessments

- [ ] Static code analysis
- [ ] Dependency vulnerability scan
- [ ] Architecture review
- [ ] Security assessment
- [ ] Performance/load testing
- [ ] Infrastructure review
- [ ] Cost analysis

### Verification

- [ ] Demo of product capabilities
- [ ] Review of production metrics
- [ ] Validate claimed scale/usage
- [ ] Reference calls with customers