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Technology Due Diligence Checklist

Technology Due Diligence Checklist

Our template Technology Diligence Checklist is tailored for transactions that involve target companies in the technology industry. In addition to general requests in categories that are applicable to nearly all transactions, our technology playbook emphasizes those areas of due diligence where issues most often arise for technology targets.

  • Tailored for use in transactions in the technology industry
  • Requests are prioritized to focus on areas of due diligence where issues most often arise for technology targets
  • Checklists are customizable to meet the specific circumstances of your deal

Due Diligence Checklist for Technology Companies

Our technology due diligence checklist excel is tailored for transactions that involve target companies in the technology industry.

In addition to general requests in categories that are applicable to nearly all transactions, DealRoom's due diligence software company technology template emphasizes information technology and security, privacy, intellectual property, products and product development, quality, and human resources requests to help the buyer focus on areas of due diligence process where issues most often arise for technology targets.

What Does an IT M&A Integration Checklist Include? 

Legal Information

  • Organizational Chart
  • Joint Ventures
  • Governing Documents
  • Authorized Jurisdictions
  • Board Minutes
  • Past Transactions
  • Related Party Transactions
  • Management Bios
  • Board Bios
  • Capitalization Table
  • Equity Issuances
  • Options and Convertible Instruments
  • Outstanding Debt
  • Litigation
  • Encumbrances
  • Material Contracts - Termination
  • Material Contracts - Restrictive Covenants
  • Material Contracts - Continuing Obligations
  • Indemnification Agreements
  • Compliance Program
  • Bad Actor Confirmation
  • Export Control
  • Sanctions
  • Material Regulations
  • Regulatory Correspondence
  • Product Recalls
  • Warranty Claims
  • Regulatory Correspondence
  • Regulatory Violations
  • Property Summary
  • Deeds
  • Leases
  • Purchase and Sale Agreements

Commercial Information

  • Customer List
  • Customer Terminations
  • Customer Support
  • Sales Channel List
  • Sales Data
  • Customer Contracts
  • Sales Channel Contracts
  • Commission Contracts
  • Long Term Contracts
  • Government Contracts
  • Commercial Policies
  • Pricing Policies
  • Product Testing Policies
  • Partnerships
  • Product Pipeline
  • R&D Summary
  • Strategic Plans
  • Marketing/Advertising Plans
  • Advertising Materials
  • Product Descriptions
  • Marketing Assessment
  • Vendor List
  • Vendor Contracts
  • Subcontractor Contracts
  • Vendor/Supplier Onboarding Process

Financial Information

  • Financial Statements - Audited
  • Financial Statements - Unaudited
  • Off-Balance Sheet Transactions
  • Contingent Liabilities
  • Prepaid Expenses
  • Audit Letters
  • Accounting Policies
  • Changes to Accounting Policies
  • Budgets
  • Projections
  • Cash Management
  • Investment Policies
  • Accounts Receivable - Aging
  • Bad Debts
  • Reserves
  • Credit Support Obligations
  • Bank Statements
  • Equipment
  • Capital Expenditures - Past
  • Capital Expenditures - Planned
  • Fixed Assets
  • Insurance Policies
  • Insurance Claims Summary

HR Information

  • Employment Agreements
  • Consulting Agreements
  • Compensation Arrangements
  • Confidentiality and IP Agreements
  • Severance Agreements
  • Recruiting Arrangements
  • Benefits Summary
  • Benefit Plans
  • Compensation Policy
  • Bonus Plans
  • Stock Option Plans
  • Stock Option Awards
  • Employee Litigation
  • Judgements and Awards
  • Disciplinary Proceedings
  • Investigations
  • Headcount
  • Suspended Employees
  • Dismissed Employees
  • Absentee Reports
  • Disabled Employees
  • Employee Policies
  • Hiring Policies
  • Changes to Employee Policies
  • Employee Loans

IP Information

  • Patents and Trademarks
  • Domain Names
  • Licensing Agreements - Incoming
  • Licensing Agreements - Outgoing
  • Jointly-Owned IP
  • Infringement
  • IP Restrictions
  • IP Litigation
  • IP Development

IT Information

  • IT Projects
  • Key IT Resources
  • Software
  • Material Software
  • Hardware
  • Material Hardware
  • Technical Architecture
  • System Networks
  • Hardware Configurations
  • IT Support Services
  • IT Maintenance
  • IT Contracts
  • IT Services
  • Growth
  • IT Acquisition
  • Help Desk
  • IT Strategy
  • Automation
  • Web-based Applications
  • Security Protocols
  • Disaster Recovery
  • Data Privacy
  • Sensitive Information
  • Stress Test Results
  • Other IT Security Testing
  • Summary of Security Issues
  • Data Storage
  • Data Encryption
  • E-mail Vulnerabilities
  • Anti-Virus Protection
  • Attacks/Intrusions
  • Mobile Device Security

Tax Information

  • Audit Results
  • Property Tax Summary
  • Tax Returns
  • Correspondence with Taxing Authorities
  • Tax Sharing Arrangements
  • Deferred Taxes
  • Tax Policies
  • R&D Credits
  • Tax Assets
  • Sale and Leaseback Transactions
  • Overseas Tax
  • Base Cost Adjustmentss
  • Tax Planning
  • Employment Taxes

Can I change requests in this checklist or add new?

Every M&A and due diligence process is different. Downloaders are urged to make these checklists their own by changing the providing information to better fit their needs.

Does this questionnaire provide all the necessary due diligence information?

This technology due diligence checklist was created by and for M&A professionals. It includes a comprehensive starting point for tech due diligence process. However, every deal is different and may require additional requirements and tasks.

Easily Collect Data Using this Due Diligence Template in DealRoom

DealRoom is a project management solution and virtual data room for complex financial transactions. DealRoom enables increased collaboration, efficiency and value creation by providing a centralized platform in which practitioners can organize and complete tasks essential to due diligence, integration and deal success. By conducting all aspects of integration through DealRoom, practitioners can securely store important documents, collaborate on requirements, communicate more easily with third parties, and establish priorities.

How to use the template with DealRoom:
  • Download the due diligence template from DealRoom’s website
  • Open a room within DealRoom
  • Go to the Requests tab and select “import”
  • Import the downloaded template

The Requests tab is automatically populated with the requests from the due diligence template. Users can begin assigning, adding to, and completing due diligence requests.

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