Crescent Capital Advisors· Technology

PRISM™ — Technology Due Diligence Framework

Version 1.1

CCA's proprietary technology due diligence framework. Five dimensions scored 0–100. Every finding priced as CapEx requirement, EBITDA drag, or exit multiple implication. Not a checklist — a financial instrument.

PRISM is how we see the asset. CLEAR™ is how we operate it.

The Five Dimensions

LetterDimensionThe Business QuestionRole
PPortfolio FitCan tech support the investment thesis?Gate
RRisk QuantificationWhat tech risks create financial exposure?Price
IInfrastructure & EngineeringCan the platform scale?Foundation
SStrategic Data AssetsCan the data create value?Upside
MManagement & ExecutionCan this team deliver the thesis?Multiplier

The I vs. S Distinction

I — Can the platform scale? Foundation question: engineering and infrastructure. A failing I score is CapEx — servers to buy, engineers to hire, systems to rebuild.

S — Can the data create value? Upside question: AI, data assets, monetization. A strong S score is enterprise value waiting to be unlocked.

Different questions. Different financial implications. Different operators deploy to address each.

Score Thresholds

ScoreInterpretationImplication
80–100Technology StrengthValue creation focus
60–79Technology ReadyTargeted remediation
40–59Technology RiskPriced remediation required
20–39Technology LiabilityDeal terms adjust
0–19Technology Deal RiskRe-price or pass

Every finding maps to one of four buckets: Gate (stops the deal), Price (negotiated into offer), Thesis (changes what the deal is supposed to do), or Lever (becomes part of the 100-day plan).

Key Outputs

  • PRISM Score — 0–100 composite, weighted by thesis
  • Engineering Health Score — I dimension, 0–100 across 5 sub-dimensions
  • AI Readiness Index — S dimension, 0–100 across 4 gates
  • Financial Exposure Summary — CapEx, EBITDA drag, 3-year cost of inaction
  • 100-Day Plan Input — remediation priorities and quick wins
  • CLEAR™ Framework Handoff — diligence becomes the post-close operating playbook

What a PRISM Review Covers

  1. Product and roadmap
  2. Engineering execution and velocity
  3. Architecture and platform
  4. AI/data maturity
  5. Security and trust (cyber posture)
  6. Cloud, tooling, and cost
  7. Team and operating rhythm
  8. Board/executive communication

Engagement

A PRISM review runs 3–4 weeks: document review, stakeholder interviews (CEO, CTO/VP Engineering, CISO, product lead, 1–2 key engineers), written deliverable with executive summary, and readout. Output is board-ready — 2–3 pages of executive summary plus a 100-day technology roadmap the operating team can execute on day one.

PRISM feeds directly into CLEAR™ — diligence becomes the post-close playbook, not a binder filed after close.

Apply PRISM™ to a specific portco.

Bring the asset and the thesis. We'll walk the framework against the real technology estate and show where it moves the number.