Make technology part of your value growth
When it comes to software investments, technology determines not only the risk of a deal but also how much room there is for growth after the transaction. Technical debt, cloud costs, security, architecture, and engineering capacity directly impact scalability, margins, and the speed at which a portfolio company can grow.
With SUE Vendor Due Diligence, we do more than just identify technical risks. We translate our findings into concrete business impact and an actionable roadmap for value creation.
What is important for private equity?
For an investor, it is important to understand where the technical risks lie before the transaction. But just as important is the question of how technology can contribute to further value creation after the transaction. You want to know whether intellectual property and compliance are properly managed, whether security risks are manageable, how much technical debt is limiting development speed, where cloud costs are putting pressure on margins, and whether the software architecture is ready for further growth. This makes technical due diligence not only a pre-transaction review but also input for the value creation agenda after closing.
From Technical Findings to Business Impact
A traditional technical due diligence often ends with a list of points for attention. SUE goes further. We first read the code—with the help of our Reverse Architect Agent—and compare it to the documentation: every discrepancy is a finding. We express technical debt in developer-days so you can factor it into the price or the terms of the agreement. We examine the software, architecture, cloud environment, security, intellectual property, and product and engineering organization. We then link those technical findings to relevant financial and operational implications.
This provides insight into risks that require attention before or after closing, as well as opportunities to reduce cloud costs, free up development capacity, accelerate the SaaS journey, and strengthen the technical foundation for further product development. This approach aligns with the broader SUE methodology for “ Application Modernization ”: analysis of the codebase and dependencies, assessment of cloud costs, validation with stakeholders, and ultimately a concrete roadmap for modernization and value growth.
Technical due diligence or vendor due diligence?
SUE conducts the same analysis for both the buyer and the seller; the question the report answers differs.
Technical Due Diligence
For the buyerWhat am I buying, and what will it cost to address the risks? You’ll receive a risk register, the costs associated with addressing those risks as justification for a price adjustment, and an assessment of your compliance status with suggestions for provisions to include in the purchase agreement. We advise on whether to retain, modernize, or rebuild, as well as on buy-and-build strategies and vendor lock-in.
Vendor Due Diligence
For the sellerWhat does a buyer look for, and what do I need to address before the sale? You have the IP, security, and compliance reviewed before the sales process begins, receive a priced plan for margin and R&D capacity, and provide delivery metrics that a buyer can verify. You’ll also see what growth opportunities the platform can support, such as AI modules and acquisitions of other companies.
The 6-pillar framework
One assessment. Six perspectives on software value.
SUE evaluates a software organization from six interrelated perspectives.
01
IP & Compliance
We identify software components and dependencies, assess licensing risks, and verify intellectual property ownership. This allows us to identify potential legal and compliance risks early on.
02
Cybersecurity & Risk
We investigate vulnerabilities in code and dependencies, known CVEs, exposed credentials, and privacy risks. This helps identify which security measures are necessary and what risks may arise after the transaction is closed.
03
Software Architecture & Technical Debt
We evaluate maintainability, database performance, modularity, and the ability to decouple business logic from existing interfaces. This reveals where technical debt is limiting further product development and scalability.
04
Cloud & COGS
We analyze cloud usage, infrastructure costs, and the maturity of deployment automation. This allows us to identify where overcapacity, unused resources, or inefficient architecture directly impact operating costs and SaaS margins.
05
Product & AI
We look at customer onboarding, the maturity of APIs, and how ready the product truly is for AI. In doing so, we evaluate not only the current product but also how easily new functionality, integrations, and AI offerings can be developed.
06
Team & Velocity
We assess dependence on key personnel, software delivery performance, and engineering workflows. This reveals where knowledge risks exist and where capacity can be freed up within the current team.
From Analysis to Insight in Four Weeks
- Step 1
Ingest and Scan
Automated SCA/SAST, read-only cloud telemetry
- Step 2
Analyze the Code
Architecture Review, SDLC, and DORA Metrics
- Step 3
Translate into Financial Impact
Cloud OpEx and Margin Matrix, IC Blueprint, and Comparison with Multiples
- Step 4
Delivery and IC Briefing
Submit the report, coordinate with stakeholders
From Discovery to Value Growth
Make technical improvements financially relevant
We translate technical findings into concrete impacts on growth, margins, capacity, and risk. This makes it immediately clear where improvements will deliver the most value.
What are the benefits?
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More R&D Capacity Improved architecture and delivery can free up 15% to 25% of development capacity for product development.
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Faster SaaS Growth With automation, Infrastructure as Code, and an internal development platform, teams can deliver new features to customers faster.
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Protecting Recurring Revenue Improved telemetry and usage data make customer risks visible earlier and help protect retention and revenue.
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New Revenue from AI A robust data and API architecture enables faster commercialization of new AI capabilities, with a potential 5% to 15% increase in ARR.
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Higher Cloud Margins Cloud optimization can reduce infrastructure costs by 15% to 35% and directly contribute to a higher gross margin.
"Technology only creates true value when it solves real business problems. By focusing our Vendor Due Diligence on business drivers, we convert cloud waste into immediate EBITDA growth and measurable increases in exit valuation. "
Modernize the code. Optimize the cloud. Run the platform.
SUE is a Dutch cloud native solutions partner that modernizes mission-critical applications, reduces cloud costs, and manages your platform. Specialists in Linux, Kubernetes, and the cloud.
29+
Years Experience
150+
Engineers and consultants
1.150+
Certifications
ISO
9001 & 27001
500+
Projects
75+
Research papers
Partner of progressive organizations
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