Product Diligence is team of experienced consultants who provide due diligence services for PE or corporate investors

We apply our extensive product, market, technology, and transaction expertise to help our global clients understand how understanding product's underling technology drives value creation. Product Diligence offers pre-investment, post-investment, and pre-exit product consulting services for leading technology-enabled or data-enabled companies, and global private equity investors.

Pre-Investment

  • Buy-Side Integrated Product Due Diligence
    Combined market, product, and technology diligence for situations where current and future product capabilities are critical to the investment thesis
  • Buy-Side Product Due Diligence
    In-depth assessment of product capabilities and management's roadmap completed in collaboration with other vendors who perform commercial due diligence and/or technology diligence of the target
  • Buy-Side Data Science Due Diligence
    In-depth assessment of AI/ML capabilities and management's vision for enhancements of data science capabilities completed in collaboration with other vendors who perform commercial due diligence and/or technology diligence of the target

Post-Investment

  • 100 Day Plan
    Supporting management immediately post-transaction on developing plans to implement technology recommendations, post-merger integrations, and formulating 100-day plans.
  • Other Value Creation
    Supporting management team in strategic initiatives such as SaaS migration, R&D org transformation, post-merger integration, etc.
  • Sell-Side Technology Vendor Due Diligence
    In-depth technology assessment, identifying low-hanging fruit for remediation prior to sale, and coaching management for upcoming process and documentary requests. Tech Economy additionally prepares vendor due diligence reports for the data room.

Collaborative Approach to Buy-Side Product Due Diligence

Throughout an engagement, we work closely with our clients and the other transaction workstreams to remain aligned with the goals of the investment thesis and ensure we deliver impactful and comprehensive insights and recommendations. Select examples:

  • The Product Diligence team often supports generalist consulting firms leading the commercial diligence workstream in understanding the broader product ecosystem dynamics driving the target company and helps craft tailored questions for primary calls and surveys that will resonate with tech decision makers.
  • Our team also supports Tech / IT diligence teams in connecting their findings with implications on the product roadmap and investment thesis.
  • We often support finance workstreams in building financial models and provide technology-related OPEX and CAPEX.



Key Areas Covered in Product Due Diligence

  1. Product Market Positioning Assess perceived product strengths and weaknesses through primary research with industry experts, decision makers, and users. Also evaluate product's actual capabilities through product evaluation, and outside-in calls with former product managers and developers of the target.
  2. Product Vision and Roadmap Review product roadmaps and strategic initiatives providing insights into the company's short-term and long-term strategy including potential implementation risks.
  3. Data & Analytics Evaluate the platforms' data analytics capabilities, including machine learning and artificial intelligence, providing insights into its ability to leverage data for future growth and efficiency.
  4. Technology & Architecture Review the products’ technology and architecture, including technical debt and technology stack, providing insights into the maintainability and scalability of the product features.
  5. R&D Organization & Processes Assess the quality and efficiency of the R&D organization and processes, providing insights into its ability to execute on product roadmaps.
  6. Hosting Infrastructure Review hosting and cloud usage details, disaster recovery processes, procedures, providing insights into the company’s level of cloud migration maturity.
  7. Cybersecurity & Data Privacy Review cybersecurity processes, procedures, and implementations, providing insights into the company’s cybersecurity maturity and risk.

Bespoke Approach to Value Creation Engagements

We support management post-investment on developing plans for implementing technology recommendations, post-merger integrations, and formulating 100-day plans. This may include evaluating the company’s product-market fit, data silence capabilities, SDLC processes, platform architecture, technical debt, and identifying high priority remediations with indicative timings and cost to execute.


Tailored Sell-Side Support

Often, maximizing the return on selling a portfolio company can hinge on the preparedness and performance of the Product and Engineering team during the buy-side diligence process. Preparing for a due diligence process in advance increases the confidence of potential buyers and reduces avoidable risks throughout the transaction.

  • Management coaching Product Diligence team prepares management for upcoming sales processes and documentary requests.
  • Internal Assessment We also provide a pre-exit sell-side assessment of the product platform and technology. The team delivers insights regarding potential gaps and recommendations, identified risks, and areas of improvements specific to future due diligences.
  • Sell-side Report We closely collaborate with management, the buyer, and banker on providing subsets of factual findings that can be included in CIM, management presentaiton and/or provided to buy-side only if requested