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What Technical Due Diligence Should Actually Cover

Before you sign an acquisition, wire a funding round, or commit to a long-term vendor, a rigorous technical audit tells you what you are really buying. Here is what technical due diligence should inspect, when to run it, and the red flags that should give you pause.

CodonomyJuly 30, 20269 min read0 views
What Technical Due Diligence Should Actually Cover

Frequently asked questions

A security audit focuses narrowly on vulnerabilities, access controls, and data protection. Technical due diligence is broader: it includes security but also covers architecture, code quality, team capability, delivery process, and how all of that maps to the commercial deal. Security is one chapter of the larger story.

An independent party with senior engineering and architecture experience, ideally one that does not stand to gain from the deal closing. Internal teams can contribute context, but they may lack objectivity or the bandwidth to run a thorough review during a live transaction. An outside firm brings pattern recognition from having seen many systems.

Cost depends on scope, system complexity, and depth. A focused review of a single product costs far less than a deep audit of a multi-service platform with penetration testing. Weigh the fee against the size of the transaction: on any meaningful acquisition or round, the review is a small fraction of the amount at risk.

Yes. Most reviews are conducted remotely using shared repository access, cloud console permissions, and video interviews. On-site time can help for complex organizations or when infrastructure is not cloud-based, but it is rarely required for a thorough assessment.

A written report with a prioritized risk register, each item rated by business impact and likelihood, along with estimated effort or cost to remediate. It should also include an executive summary that a non-technical decision-maker can act on. Avoid engagements that end in a vague letter grade with no specifics.

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CodonomyEditorial Team

Insights from the Codonomy team on custom software, AI, automation, and digital growth for B2B companies.

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