Technical due diligence & operational assessment

ALGI Advisory e.U

Industrial transactions

Technical due diligence for acquisitions and equity investments

What technical capabilities are you acquiring — and what dependencies, investment needs and integration barriers come with them? ALGI Advisory e.U supports investors, including private equity investors, as well as owners and industrial companies in the technical assessment of business acquisitions and sales.

Discuss the technical aspects of your transaction Explore our review focus

For machinery and plant engineering companies, automation businesses, and industrial or technology-driven acquisition targets.

Technical questions that matter to the transaction

Technical assets and capabilities

What is the technical condition of equipment, systems and processes? Which dependencies and weaknesses affect ongoing operations and future development?

Investment needs and risks

What corrective technical work or investment is foreseeable? Which uncertainties and gaps in evidence need to be considered in the decision?

Integration readiness

How readily can technology, software, interfaces and engineering structures be integrated? What prerequisites and barriers will affect implementation?

Technical priorities for your transaction

Machinery, plant, production processes, automation, robotics and engineering structures form the industrial context. Within it, we examine three technical areas in greater depth. The selection and depth reflect the target company, transaction requirements and available information.

PLC and software quality

We examine control and software architectures, development standards, code quality, documentation, test methods, version control and change management. We also consider dependencies on individual developers or suppliers.

Value for your decision: For the transaction, this reveals the maintenance and development risks you would take on and where corrective technical work or investment may be required.

OT/IT architecture and integration

We examine industrial communication structures, such as OPC UA or Profinet, and connections to HMI, SCADA and MES systems. Middleware, cloud/IoT interfaces and compatibility with existing systems are also considered according to their relevance to the target company.

Value for your decision: This supports an assessment of integration effort, scalability and technical dependencies within the future group of companies.

Security, safety and evidence

We examine OT security concepts, machinery and plant safety, functional safety, existing risk assessments and technical CE documentation. Within the agreed review scope, missing evidence is considered in relation to operations and planned changes.

Value for your decision: Technical action requirements, potential follow-on costs and points to resolve before the decision can be brought together in a traceable way.

Explore the technical review areas in context

Technical findings for the transaction decision

The review produces a structured account of the material technical findings. Technical depth and the management perspective are brought together clearly.

Assessment of technical capabilities and material operational dependencies
Technical risks, weaknesses and identifiable investment needs
Assessment of key integration prerequisites and barriers
Clearly documented open points and limitations caused by missing information
Prioritised technical topics for the decision, further clarification and handover

The review of technical and digital capabilities complements the other specialist reviews in a transaction. The specific scope is agreed before work begins.

Combining technical depth with transaction requirements

Agree the scope and priorities

Align the target company, decision requirements, timescale and access to information. Technically significant areas receive clear priority early in the process.
Examine evidence and systems

Bring together available documentation, discussions with responsible staff and agreed site or system reviews to establish a traceable technical picture.
Present findings for management decisions

Explain risks, investment needs and integration barriers clearly. Uncertainties and missing information remain visible.
Prepare the handover

Consolidate the key technical topics for further clarification and subsequent implementation. Support after closing is agreed under a separate scope of work.

Case study: machinery and plant engineering

Technical due diligence and subsequent integration

Situation

An acquisition raised uncertainties about the target company's technical condition, integration readiness and future capabilities.

Our contribution

Technical due diligence covering equipment, processes, IT systems and organisational structures. Assessment of technical capabilities, identification of weaknesses and analysis of integration readiness. The subsequent integration phase was supported with clear technical and organisational priorities.

Results

Transparent assessment of technical risks and opportunities
Identification of potential efficiency improvements of approximately 18%
Structured support for integration into the existing organisation
A sound basis for investment and post-merger integration decisions

The approximately 18% refers to potential identified in this specific project. It does not represent generally achievable or already realised savings.

From technical findings to integration after closing

How can technical due diligence findings support subsequent integration? The article explains how findings, evidence and open issues are handed over clearly and translated into implementation steps with assigned responsibilities. Technical review, assessment and integration management remain distinct tasks.

Read the Technical DD & Integration article

Our specialisation at a glance

The graphic places our three areas of specialisation within the wider due diligence disciplines of a business transaction. The technical content is also explained in the text above.

Overview of due diligence disciplines highlighting ALGI's focus on technology, digital systems and integration — ALGI's areas of focus are highlighted in blue. The other disciplines show the wider transaction context.

Discuss the review scope Open the full-size graphic (new tab)

Questions about technical transaction reviews

Which target companies do you focus on?

Our focus is on machinery and plant engineering, automation and technology companies, and industrial manufacturers. Review areas and depth are tailored to the business model and the specific transaction.

How do you handle missing documentation?

Missing evidence and open questions are identified transparently. We explain their implications for the technical conclusions and clearly record the further clarification required.

Can support continue after closing?

Yes. Technical integration and operational stabilisation can be supported under a subsequent assignment. The review findings provide a basis; implementation tasks, responsibilities and scope are agreed separately.

Industrial experience and personal responsibility

Alexander Girkinger brings more than 35 years of industrial experience in plant engineering, mechanical engineering, automation, control engineering and technical project management to the review.

More about Alexander Girkinger

Related services

Which technical questions are critical to your transaction?

In an initial discussion, we clarify the situation, target company, decision requirements and available timescale.

Discuss the technical aspects of your transaction Contact details