Deal Mechanics & Buyer EducationMay 25, 20263 min read
Technical DD vs. Financial DD: Why You Need Both
Financial diligence tells you what the business earned. Technical diligence tells you what it will cost to keep earning it.
The two workstreams answer different questions and fail in different ways. A quality-of-earnings report can be immaculate while the system producing those earnings requires a rebuild.
The division of labour
- Financial: revenue quality, margins, working capital, customer concentration
- Technical: delivery capability, operating cost trajectory, key-person exposure
- Shared: cloud spend, capitalized development, support cost per customer
The shared line is where the two teams should compare notes. Most surprises live in the overlap neither side owned.
Working an active deal?
We respond within one business day with fit and a flat-fee scope.
Tell us about the deal