ALGI Advisory e.U
Article · Technical due diligence and integration
From technical due diligence to integration: what must be clarified before implementation
After a company acquisition, technical review findings must become usable for implementation. This requires more than a report: clear findings, defined priorities, known limitations and an agreed handover to those responsible.
A technical report is the starting point for further work
Technical due diligence examines the technical, operational and digital assets and capabilities of a target company. It supports the transaction decision by providing a clear assessment of risks, dependencies and identifiable needs for action.
After ownership changes, the task shifts: which issues directly affect ongoing operations? Which measures can be prepared? Which changes depend on further evidence, resources or decisions?
Technical integration builds on the agreed handover from review and assessment. It manages the agreed measures and their progress. If new information requires technical findings or assessments to be reviewed again, this follows an explicitly commissioned technical clarification process. A recommendation becomes a work assignment only once prerequisites are clear and an implementation decision has been made.
An actionable handover connects six pieces of information
Finding and affected area
What was established? Which plant, system or process is affected? The finding must be specific enough for those responsible for implementation to assess it.
Evidence and limits of the conclusion
Which documents, discussions or observations support the finding? Which parts were examined, and where is information missing? The limits of the conclusion form part of the handover.
Risk and priority
What technical or operational significance was assessed? Which priority is confirmed for handover? The assessment and its rationale are handed over with their current status; integration planning then determines the implementation sequence.
Open issues
What still needs clarification? Which documents, tests or decisions are missing? Open issues need a defined clarification process before dependent changes are approved.
Recommended action and prerequisites
What further work is recommended? Which interfaces, resources or preparatory measures does it require? Effects on ongoing operations must also be considered.
Recipient and responsibility
Who receives the information, who clarifies open questions and who decides on implementation? These roles are agreed between the review team, management and the operational team.
Turn recommended action into verifiable tasks
“Integrate IT” is too broad an instruction for project control. First establish which systems, data flows and operational functions are affected. Only then can useful work packages, dependencies and responsibilities be defined.
Each major task should describe the required outcome. Its connection to the handed-over finding and recommendation must be retained. It also needs an owner, the required prerequisites and a planned check of the outcome. A fully configured interface, for example, is not the same as data transfer tested under the intended operating conditions.
During implementation, progress, obstacles and necessary decisions remain visible. New information may require further technical clarification. It should be routed back through an agreed review or decision process; existing assessments must not be changed silently.
Illustrative example: If current backups of a machine controller are missing, first establish which program version is available. This may lead to tasks for creating a backup and conducting an agreed restoration test. The test environment, approval and effects on ongoing operations must be clarified beforehand. This example illustrates how tasks are defined; it is not an additional finding from the project described below.
Structure the first 100 days around actual needs
A 100-day plan provides a timeframe for early integration work. It should reflect the findings handed over, ongoing operations and available resources.
Initial priorities are stabilising key processes and clarifying urgent prerequisites. Agreed changes, technical interface work and further implementation measures build on that foundation. Not every issue must be completed within 100 days; longer-term tasks nevertheless need a clear status and assigned owners.
A generic division into fixed blocks of days cannot replace technical prioritisation. Scope and sequence depend on the company, its technical dependencies and the specific integration objective.
Practical example: technical review and integration of a mechanical engineering company
Starting point and personal assignment
During the acquisition of a mechanical engineering company, Alexander Girkinger served as the overall interim manager for an investment holding company. His assignment combined technical review with support for the subsequent organisational and technical integration.
His contributions
His work included technical due diligence, examination of processes and organisational structures, and development of optimisation proposals. During integration, he supported, among other tasks, connecting IT to the holding company and establishing reporting. Coordination with managers and employees was an essential part of the assignment.
From an individual case to a structured approach
In a follow-on assignment, Alexander Girkinger developed a practical guide for further acquisitions and integrations. Project experience was thus translated into a reusable structure for preparation, handover, integration steps and communication.
The example shows how technical examination and operational support relate to one another. It forms part of the experience underpinning his advisory and methodological work today.
This practical example is anonymised and based on Alexander Girkinger’s account of the project. Historical project work is not presented as an application of the book methodology developed later.
Frequently asked questions about technical handover
Does technical due diligence replace an integration plan?
It provides important findings and a basis for decisions. The integration plan describes the subsequent agreed work, including tasks, owners and prerequisites. The scope and responsibility for implementation must be clarified separately.
What happens to missing evidence after closing?
It remains outstanding until the required clarification has taken place. Its significance for affected measures must remain visible. An outstanding review should not be treated as completed merely because the transaction has closed.
Must all integration measures be completed within 100 days?
No. The early timeframe supports stabilisation, prioritisation and structured management. Technically extensive changes may take longer. At least their prerequisites, responsibilities and next steps should be clarified.
Advisory support for the relevant project phase
Before the transaction decision
Assess the target company’s technical assets, risks and integration prerequisites.
Technical due diligence for investorsAfter the acquisition
Turn technical handovers into stabilisation and agreed implementation.
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