Technology Due Diligence as part of overall Due Diligence

At ECN, we base our due diligence on tailored due diligence checklists, supplemented with document analyses, site visits and a range of interviews. If required, we can broaden our due diligence analysis to include lab assessments. In this way, the investor gains a clearer picture of the risks and opportunities that are associated with the development of new technologies.

We don’t see Technology Due Diligence as a stand-alone assessment, but as a process that forms part of the overall due diligence appraisal, based on the investment thesis. We take the time to understand your investment thesis and its implications for due diligence. In order to safeguard this process for our clients, we always carry out a due diligence appraisal in three phases:

Phase 1: Internal check

Can ECN carry out the due diligence appraisal for the investor?

  • Check that ECN can be fully independent.
  • Potential conflicts of interest are always disclosed to the client.
  • Initial high-level assessment of the technology, to assess whether ECN has the necessary capabilities and facilities in house.
  • Go/no go decision on due diligence.
  • If decision is made to go ahead: set up the deal team that will undertake the due diligence. 

Phase 2: Scope and information request

The investor is given a clear understanding of what ECN can and cannot do for them.

  • Key transaction objectives are discussed with the investor.
  • Key risks and value drivers are identified and the scope of the due diligence is determined in close cooperation with the investor.
  • The client or investor makes the go/no go decision on ECN’s proposal.
  • ECN checks whether all the necessary information is available and, if required, sends the investor a request for additional information.

Phase 3: Execution of assignment

The final phase – carrying out the assignment – always takes place in two steps:
1.        ECN delivers an initial draft version of the report, which is discussed with the investor. The investor naturally has an opportunity to ask questions arising from the report, and can also highlight areas that may need further attention.
2.        Possible further research on the basis of the input from step 1, and finalization of the report.

Want to know more?

If you are interested or you would like more information about our services, please contact us.