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Technical due diligence

Checking the technology before you buy a business, or before somebody buys yours.

Please note: This page explains what a term means. It is general information, not legal, financial, tax or investment advice, and it does not know anything about your business. Before you sign, file or commit to anything, check it with an accountant, a solicitor, or the official guidance we link to.

What it means

Technical due diligence assesses the state of a business's technology: architecture, code quality, security, licensing, key person dependency and technical debt.

Why it matters

It affects price. A system nobody but one contractor understands, or one built on unlicensed components, is a discount and sometimes a deal-breaker.

What it looks like in practice

On the sell side, the preparation is documentation, licence records, security basics and reducing single-person dependency — and it takes months, not weeks.

What to watch out for

Open source licences with copyleft obligations in a product you sell. It is a standard finding and it can require rework.

Where to get proper advice

A technical adviser with transaction experience, and a solicitor on IP and licensing.

Where to read more

Last reviewed 2026-08-28 by Fiducia Together · Next review due 2027-08-28

Please note: This page explains what a term means. It is general information, not legal, financial, tax or investment advice, and it does not know anything about your business. Before you sign, file or commit to anything, check it with an accountant, a solicitor, or the official guidance we link to.

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