Technical Due Diligence for Company Acquisitions and Sales
Technical Due Diligence for well-founded investment decisions
The problem
Lack of or inadequate technical testing is one of the most common causes of investment losses. Technical details, whether in infrastructure, equipment or new technologies, can cause unforeseen costs or delays that jeopardize success.
Our solution - precise technical advice
Our Technical Due Diligence is not based on theoretical models, but on operational experience in mechanical engineering, automation and software development.
For automation and mechanical engineering companies, a superficial assessment is insufficient. In our Technical Due Diligence, we not only analyze systems and processes at a high level, but also specifically examine technical risk drivers, integration capabilities, and future viability.
Our analysis considers, among other things, PLC and software standards, OT/IT interfaces, communication architectures, cybersecurity, functional safety, and regulatory requirements. This is based on a structured, practical testing methodology with a focus on investment security and feasibility.
PLC & Software Quality
Examination of the PLC systems used, development standards, and code quality. Analysis of documentation, test methods, version control, and change management.
The goal is to identify technical risks, maintainability, and dependencies early on.
OT/IT architecture & integration
Analysis of communication structures such as OPC UA, Profinet, Modbus or EtherCAT as well as SCADA, middleware and cloud/IoT connections.
Evaluation of the integration capability, scalability and future viability of the technical architecture.
Security, Safety & Compliance
Evaluation of PLC safety concepts, functional safety, machinery directive, CE conformity and risk analyses according to ISO 12100.
Identification of technical liability and investment risks prior to the transaction.
Depending on the target company and transaction context, we go significantly deeper in the technical review.
Typical test fields in detail
Our technical due diligence includes, among other things:
– PLC and software architecture
– HMI and SCADA systems
– OT/IT interfaces and communication protocols
– IT security concepts and cybersecurity
– Machine and plant safety
– Robotics and automated manufacturing
– Industry 4.0, IoT, and cloud connectivity
– Production processes and engineering structures
The selection and weighting are tailored to each target company and transaction context.
The result of the review is not a general assessment, but a structured evaluation of technical risks, integration hurdles and potential investment needs as a reliable basis for decisions regarding purchase, sale or integration.
Example: Technical Due Diligence and Integration of a Mechanical Engineering Company
Initial Situation:
As part of an acquisition in the mechanical and plant engineering sector, there was significant uncertainty regarding the actual technical condition, integration capability, and future performance of the target company.
In addition to assessing technical risks, a key question was how efficiently existing structures and processes could be integrated into the buyer’s organization.
Our Role:
Execution of a technical due diligence with a focus on equipment, processes, IT systems, and organizational structures.
Evaluation of the technical substance, identification of weaknesses, and assessment of integration capability into the existing organization.
Support during the integration phase with clear prioritization of technical and organizational measures.
Result:
– transparent assessment of technical risks and opportunities
– identified efficiency improvements of approximately 18%
– structured and low-risk integration into the existing organization
– solid decision-making basis for investment and post-merger integration
Example: 100-Day Integration Plan Following an Acquisition
Initial Situation:
Following the acquisition of a company, the key challenge was to execute the integration quickly, in a structured manner, and without disrupting ongoing operations.
In technology-driven businesses, the first weeks after closing are critical for operational stability, retention of key employees, and the realization of planned synergies.
Our Role:
Development and implementation of a structured 100-day integration plan with clear prioritization of technical, organizational, and personnel-related measures.
Focus on rapid transparency, retention of key resources, and targeted stabilization of critical areas immediately after closing.
Result:
– rapid operational stabilization after closing
– retention of key personnel and critical know-how
– clear prioritization of integration measures
– structured realization of synergies in the early phase
– reduced integration risks and accelerated value creation
Additional Project Experiences
Technical Due Diligence / M&A
✔️ Technical due diligence for mechanical engineering and automation companies
✔️ Analysis of technical risks, integration capability, and investment requirements
✔️ Development of structured 100-day integration plans following acquisitions
✔️ Evaluation of production, engineering, and automation structures
✔️ Identification of technical weaknesses and efficiency potential
✔️ Support for post-merger integration with focus on stabilization and synergies
Industries & Areas of Application
✔️ Mechanical and plant engineering
✔️ Automation and technology companies
✔️ Manufacturing and industrial businesses
✔️ Investors & private equity
✔️ Company acquisitions and integration
✔️ Technical restructuring and optimization
Our support includes:
– technical due diligence and evaluation of target companies
– support during acquisition processes from a technical perspective
– analysis of technologies, risks, and integration capability
– support in technical post-merger integration