News and Insights

In today’s competitive M&A landscape, Tech DD is not a box-ticking exercise - it’s a strategic value lever. Done well, it can accelerate investor conviction and confidence, and in turn, your company valuation. Done poorly, it can derail a transaction or erode value post-deal.  

Duncan Ramsay in ECI's Commercial Team outlines his views on making Tech DD a source of competitive advantage for your business:  

1. Tech as a strategic differentiator

Investors are increasingly tech-focussed. They want to understand not just whether your systems work, but how your technology enables growth, resilience, and innovation. A robust Tech DD process should validate and help explain the importance of technology to your business. In order to make the most of this process we recommend you: 

• Link technology to business strategy: Can you clearly articulate how your tech stack supports your commercial model? Not only will this demonstrate differentiation to the end investor, but it also helps ease your DD process. If providers can understand the purpose of tech within the business and what the infrastructure looks like, they can start asking the right questions sooner.  

• Demonstrate scalability and resilience: Are your systems ready for growth, or will they buckle under pressure? What happens if something goes wrong? If you can tie your tech roadmap to your growth projections it will bring to life how tech underpins your business potential, while demonstrating your ability to mitigate impacts of unexpected issues helps investors get comfort that even if something does go wrong, you can deal with it.  

• Showcase innovation readiness: What steps have you taken to drive benefit from AI, automation, or new data capabilities? It will be important to highlight the impacts of what you have done to date, and your readiness to push further, but also to show the process for how your company innovates, how your teams work together to deliver, and how it translates to ROI.  

Companies that can answer these questions with confidence stand out in a crowded sales process.

2. New frontiers

Make sure your Tech feels future-proofed. In 2025. Here is where we have seen the biggest growth in focus in Tech DD in the last five years:   

• Cybersecurity: Are you resilient against ransomware, insider threats, and third-party breaches? Can you evidence your risk management processes and protections in place? Can you show a track record of testing (pen tests, phishing, etc) and the actions you took to mitigate findings? How have you responded to prior incidents, and what did you change in your defences as a result? 

• AI readiness: How have you deployed AI to date, what benefits have you seen and where do you plan to go next? Have you documented your AI strategy? How do you manage risks that come with AI usage? Are your data governance and model training practices robust enough to support AI use cases? At ECI, AI is part of our investment committee discussions. Being able to show that AI is something considered and with real applications will be beneficial. Your investor is likely to be assessing whether AI is an opportunity or a risk to your business, so it is important to demonstrate how it is enabling rather than threatening value creation.    

These areas are now standard in DD frameworks, and ignoring them can be a red flag.

3. People matter: Beyond the stack

Technology doesn’t operate in a vacuum. Investors understand the people behind the platform ae the key to achieving their growth aspirations. Questions are likely to include:  

• Alignment: Is the technology department relationship with the broader business collaborative and strategically aligned? Are you an enabler of the strategy, or a resource that is drawn upon to deliver?  

• Structure, skills & capabilities: How do you structure your team? What skills and capabilities do you have; and how does this align with customer and business value creation?   

• Team experience: What challenges has your team faced in the past and how did they overcome them? How do those past challenges align with the challenges the business has in front of it today? 

• These human factors can be leading indicators of future adaptability - or risk. 

You should also think about your people when deciding the characters in the room during tech DD. Some are likely to try and answer what they think investors want to hear, some may not give enough detail, whilst others get lost in it. The CTO’s role will be to manage these different approaches, chair the meetings to make sure expectations are clear, and thinking about who will be most effective to answer across which areas. Pre-preparing material long before a deal process is a way of giving yourself the best chance of success.

4. Practical steps to get ahead now 

Tech DD is an area where you can start work long before it is needed. Getting the information on a page will likely prompt useful questions that you can then resolve prior to getting started in the pitch process. Here are some useful areas to consider ahead of time:  

• Run a Tech DD rehearsal 6 - 12 months before exit. Identify gaps early. 

• Map your tech to your strategy on a single slide. Make it easy for buyers to connect the dots. 

• Document your wins - from uptime metrics to successful migrations. Evidence builds trust. 

Invest in your people. If you don’t think that your team is as strong or as aligned as you would like, now is the time to bring in the right skills and attributes, as you won’t want to be hiring during a sales process.

Tech DD isn’t just about risk mitigation - it’s about value creation. By treating it as a strategic opportunity rather than pure diligence, you can turn scrutiny into strength.

We chat with ECI's summer intern, Enayeth Hussain, about how he discovered our internship through upReach, his advice for future applicants, and the most surprising thing he has learned about private equity.

Q: How did you first come across ECI’s internship partner, upReach?

upReach is all about helping students from less advantaged backgrounds access career opportunities they might not otherwise get, whether that’s through mentoring, skills development or even supporting you with basic things, like getting clothes for interviews.  

Coming from Camden, a lot of people I knew were already part of it, so I saw how much it had helped others, and I wanted to be part of that too. Through the programme, I had a mentor in real estate private equity and now this internship. That kind of access is just incredible when you're a student. You get to speak with people in the industry, learn from them, and start to build your network. It really helps bridge the gap. 

Q: What was the application process and interview with ECI like?

When I saw ECI on the upReach internship list, I knew that I had to apply, getting any kind of experience in private equity as a student is incredibly rare, and I could see ECI had an amazing track record. The submission was about why I wanted to work there, the skills I’d bring, and examples of teamwork or innovation.  

The interview itself was actually a really good experience. It felt more like a conversation. I was asked about my interests and my studies – it wasn’t about catching me out or testing technical knowledge. I prepped in case, as I’ve had a few interviews where they say “no technical questions” and then ask for a full DCF breakdown, but I got the sense early on that ECI was genuinely interested in hearing from me and supporting my learning. That meant a lot.

Q: What advice would you give to other applicants in the future?

Do your research properly. I’d say understand what private equity is, but more importantly, understand where ECI sits within that. Learn what mid-market PE means, what kind of companies ECI invests in, and really get a feel for the portfolio. Private equity is about finding and growing great businesses, so if you can talk about a few of them, explain what they do, and why they interest you, that’ll really set you apart.

Q: What kind of projects have you been involved in since joining?

One that really stood out was a project to write up an initial investment memo for a company. I went through the company’s background, growth, SWOT analysis – it felt like something I would do working here. But, what was really great was I was then asked to join the team meeting and share my perspective, and it surprised me how much they valued my opinion. And that happened in my second week! Due to the younger end customer, I was able to show some different sources for reviews such as Reddit as I knew they wouldn’t be leaving them on TrustPilot. It felt like I was contributing, not just observing. 

Q: Has anything surprised you about private equity?

Definitely how much of it is relationship-driven. I always assumed PE was more number crunching, but what I’ve seen is that relationships matter just as much, if not more.  

There are conversations happening now with businesses ECI might invest in years down the line. That long-term thinking and trust-building really stuck with me. It’s also confirmed that I want to work in PE in the future. There’s space to be entrepreneurial, to build something, and to get results in your own way. I love that balance between analytical thinking and relationship management.

Q: What are you looking to do next?

I graduate this month, and two weeks after finishing at ECI, I’ll start a full-time role as a European Capital Markets Real Estate Analyst. It’s a bit like investment banking but for property. My time at ECI will be immensely valuable in framing thinking, but also it will be a great stepping stone to move into Real Estate Private Equity if I want to change in the future.  

Quick Fire with Enayeth: 

What did you want to do when you were five?

A striker for Arsenal until a kid in Year 6 joined who played for QPR’s academy made me realise that the dream might already be over... 

What do you do to unwind?

I’m a big fan of “bed rotting”, which is just lying in bed on my phone. It’s my favourite hobby, I’m not even joking. 

What’s your song for the summer? 

RS6 by Dystinct ft. Morad

If you had to go on a TV show, what would you choose? 

EastEnders. Everyone there makes terrible decisions, and I think I could help them out. 

Do you have any hidden talents? 

I play kabaddi, which is a South Asian sport that’s a mix of rugby and tag. I was captain and president of my university team, and I am part of the England set up, although we don’t really exist at the moment since we haven’t been invited to any tournaments. So maybe not that hidden… but definitely a big part of who I am. 

With the summer holidays in full swing, it's the perfect time to dive into a good book, whether you're poolside, on a plane, or enjoying a quiet moment in the garden. From thought-provoking non-fiction to brilliant storytelling, here’s what the ECI team are reading this summer:

Jin Ni Ooi

The Hard Thing about Hard Things

I picked up The Hard Thing about Hard Things after a colleague at ECI recommended it, and it quickly became one of the most insightful business reads I’ve come across. Ben Horowitz doesn’t shy away from the realities of running a company. Instead, he dives into the gritty, unpredictable side of leadership that rarely get talked about. I found his honesty refreshing, especially when it comes to making tough decisions and dealing with failure. There’s a great section on managing through chaos that’s stuck with me – practical, direct, and weirdly reassuring.

Chris Watt

The Lonely Skier by Hammond Innes

This was a thank-you gift from a friend for organising a ski trip, and it turned out to be quite a gem. The Lonely Skier is a 1940s thriller set in the Dolomites just after the war, where a down-on-his-luck ex-soldier is sent to a remote resort to pose as a screenwriter - only to get caught up in a hunt for hidden Nazi gold. 

At well under 200 pages, it’s ideal if you’re busy or just need something pacey and instantly absorbing to clear your head. The setting is tense and atmospheric, the characters are boldly drawn and very much of their time, and the whole thing moves at a real clip. Hammond Innes - himself a former artillery officer - was known for his well-researched novels and his knack for creating memorable characters and compelling plots. 

Not exactly business reading, but a great escapist holiday pick if you’re after something short, sharp, and gripping. 

Simona Everts

Blue Sisters by Coco Mellors

I think having sisters made Blue Sisters by Coco Mellors especially engaging for me. The book follows three sisters reuniting after the death of their fourth sister, and its real strength is how it captures the complexity of sibling relationships. Whilst some parts felt a little far-fetched, I think that’s what makes it a great holiday read. It also tackles serious themes like addiction and depression in a way that’s both readable and emotionally honest.

Rich Pearce

The Wide Wide Sea by Hampton Sides

The Wide Wide Sea tells the story of Captain Cook’s third and final voyage. Not just the big discoveries, but also the growing tensions and mistakes that led to his death in Hawaii. He's a character who everyone has heard of and his legacy is increasingly debated and controversial, but someone I didn't know much about. It's told through the eyes of his crew and the people he met from their diaries, letters, and verbal histories. This approach makes it very real. You’re taken right into the action, from freezing seas to tropical islands, and you see how the journey affected both the crew and the people they met. It’s a fascinating and very human story, and well worth a read

Olivia McGee

The Thursday Murder Club

I found The Thursday Murder Club by Richard Osman to be an enjoyable and uplifting read. I loved the dynamic between the main characters, especially with it being told from Joyce’s perspective. Her voice is refreshingly light and engaging – it gave the narrative a unique charm.  

What surprised me most was how hopeful the book made me feel about ageing, as it presents life in a retirement village as full of possibility, connection, and even adventure. While the murder mystery itself is cleverly constructed, it is the characters who truly bring the story to life. With a film adaptation coming to screens soon, and more books in the series, I’m looking forward to seeing how the story continues to unfold, both on the page and on screen!

We’re delighted to share that ECI Partners has been shortlisted in the PE House of the Year: Upper Mid-Cap category at the 2025 Real Deals Sustainable Investment Awards.

The Real Deals awards are among the most respected in the industry, celebrating excellence in ESG and sustainable investment practices across private equity. With an exceptionally strong field of entries this year, we’re proud to be recognised for our continued focus on responsible investing and long-term value creation.

Over the past year, we’ve continued to embed sustainability into everything we do, whether that’s through our portfolio-wide ESG action plans or the delivery of our first ever Impact Report at the end of last year. It’s fantastic to see this progress recognised in such a competitive category, and a testament to the hard work of our team and the ambitious management teams we partner with.

You can view the full shortlist here.