Technical Due Diligence

With numerous new technologies being developed and start-up companies being established (more often than not as spin-offs of university research) and the need for additional (private) funding for the development of these water quality sensor technologies becoming more apparent, it is becoming increasingly difficult to identify really promising technologies for which a significant market exists, offering a good Return on Investment (ROI). There is a growing interest of private investors in water quality monitoring technologies, for various reasons:

• the technologies developed are highly innovative;
• these technologies support a more sustainable approach towards water treatment (reduction of the use of chemicals and energy);
• water quality monitoring is directly related to public or ecological health and thus has a strong association with the needs of society.

Benten offers a range of consulting services bringing to bear its extensive experience in these fields to assist investors in choosing the most and economically efficient investment.

Technical Due Diligence

When investing in innovative water quality monitoring technology, it is important to mitigate technical risks before deciding to commit. If your goal is to acquire new technology, one critical step in the entire process is to assess the stability and validity of the company’s technology capabilities and to ensure that the measurements add up. There are a number of aspects which are essential for successful investment in new or exisiting water quality technologies, especially the development of online sensors.

Benten assists you in establishing the objectives of your investment (e.g. eliminating competition, acquiring new technology or diversifying a current product portfolio), taking into account the potential and pitfalls of each approach with regard to a rapidly expanding market. To define exactly what is a potential and what is not, it is necessary to assess many different aspects of the technology behind the sensor.

Benten provides a service which:

• investigates the potential stability and expandability of the sensor in the market;
• analyses the costs of production, operation, support and maintenance;
• looks at how much the company is reliant on the technology on offer.

Our technical due diligence also includes an assessment of the management team's technical capabilities, the know-how of the technical staff, their strengths and weaknesses and depths, as well as the key players in the technology, and the risks involved in developing new, innovative technologies. All in all, an overview which gives you the confidence to invest in innovative, new or existing, ground-breaking, or even well-established water quality sensor technology.

A Technical Due Diligience covers the following points:

• identification of scope and objectives, including confidentiality agreement;
• documentation review including all relevant technical documents;
• detailed technical audit and reporting;
• prototype testing of sensor technology (optional);
• client-liaison and after-service including additional questions or concerns.

Upon request, Benten can also provide services related to technology scouting at various levels of development (seed, series A).

Taxonomy

• Technical Due Diligence