Inside DSP Articles

Case Study – Technical Due Diligence

By BDTI, 2/7/2004

Although the economy appears to be on the mend, established technology companies and venture capitalists alike remain cautious about their investments. They are wary of accepting vendors’ claims about their technology at face value and often turn to outside experts for technical due diligence evaluations to assess and manage risk.

Such due diligence evaluations get to the heart of the value of a company’s technology portfolio, resources, and prospects. For example, a thorough assessment of a DSP core vendor includes a careful evaluation of the company’s architecture, implementation, development tools, personnel, and market strategy. This type of assessment is best performed by analysts with strong backgrounds in processor architectures, understanding of the target applications, experience using development tools, and a solid understanding of the competitive landscape.

BDTI has been providing technical due diligence evaluations of signal-processing technology and technology providers to investors, acquirers, and technology licensees for many years. BDTI’s independence and technical expertise make it the natural choice for this work. In one example, a venture capitalist contemplating a multi-million dollar investment engaged BDTI’s services for a due diligence analysis of a DSP IP start-up. BDTI evaluated the strengths and weaknesses of the company’s technology, personnel, and competitive position, and identified key milestones for the company in each area. BDTI provided the investor with an insightful assessment of the company’s chances for success, reducing the investor’s risk and creating a clearer view of the value of the investment.

For more information on BDTI’s due diligence services, please visit http://www.BDTI.com/products/services_advisory.html or contact Jeremy Giddings (giddings@BDTI.com)