What is Technical Due Diligence?

A "Technical Due Diligence" is part of a Due Diligence. Due diligence is thedetailed examination and evaluation of a purchase object in the run-up toM&A transactions. Buyers can better assess the strengths and weaknesses oftarget companies with the help of due diligence.

The Technical Due Diligence deals with the technical aspects of the potentialobject of purchase - in particular of plants and real estate - within the scopeof the Due Diligence.

For example, the study provides information on the condition of the targetcompany's facilities and real estate. The study thus shows what modernisationand repair requirements may exist. As a result, the audit also providesinformation on the sums to be invested in modernisation. Last but not least,technical due diligence can be used to determine how well individual plantsare operating at full capacity or whether a change in use or processes makessense and is feasible.