Due Diligence

In a highly competitive, dynamic environment, it is essential to fully understand the competencies of the target company when merging, acquiring or selling companies. Particularly in technology-intensive industries, the long-term technological advantages and potential of the target company are key to success.

Fast-paced technological progress and shortened product life cycles put companies under pressure to be innovative. The increasing standardization of established products entails the risk that existing technologies and business models will be undermined.   

Lower risks for investments and acquisitions   

A systematic approach helps to minimize the risks of a planned investment or acquisition. This includes a careful analysis and evaluation of the product and process technologies and their application in the market. Therefore, the Fraunhofer IPT carries out technological and commercial potential and risk analyses. In doing so, we consider the risks and profitability of existing product-market segments of the target company and examine the technologies mastered in terms of their potential for further development and integration into the company's range of services.   

We support not only established companies, but also investors from the private equity and venture capital sector in minimizing the risks of corporate investments and takeovers of technology companies. We carefully examine the assumptions made qualitatively and quantitatively in relation to the target company in order to critically question the investor's assumed investment conditions for the takeover.

Hypotheses for an analysis as a basis for recommendations for action  

In order to meet the investor's information requirements, we rely on our strictly scientific approach, which we published as early as 2008 and have applied in practice many times since then.     

It is based on the assumptions that the investor makes with regard to the target company and that shape the objectives of the planned transaction. Such assumptions are always fraught with uncertainty and generate a need for further information about the company and its economic environment on the part of the investor.   

Together with the investor, our experts specify the information requirements in a hypothesis checklist. We use the checklist to determine the focus of the area of analysis, which can be very comprehensive depending on the technology and product portfolio.   

The aim is to cover the information requirements for an investment decision within the shortest possible period of time. In this way, we create a solid basis of information that allows us to make concrete recommendations for planned acquisitions, cooperations or mergers.

Our services 

• Analysis of alternative technologies, competitors and regulatory framework conditions
• Assessment of technological maturity, feasibility and development risks
• Assessment of synergies with the existing business
• SWOT analysis (strengths, weaknesses, opportunities and threats) of the target company to identify optimization potentials
• Sound information basis for the investment decision