IT Due Diligence (M&A)

Mergers and acquisitions are often turned to as means of expanding revenue streams, investing in new markets, or bolstering current products or brands. But oversights in evaluating potential security issues and IT infrastructure can prevent organizations from fully understanding the risks accompanying a potential merger, making it difficult to understand the Total Cost of Ownership (TCO) and leading to unexpected costs during the merger process.

Our IT Due Diligence services evaluates the IT organizational structure of a proposed merger, acquisition or divesture as well as the service support functions and IT service delivery offerings already in place. This comprehensive assessment of IT functionality and infrastructure helps prioritize efforts in addressing IT concerns during the process and provides information that may influence valuations as businesses try to agree to the terms of a deal.

Each assessment is a unique process, which can make effective due diligence difficult to implement. A business may acquire another business for a variety of reasons, such as diversification or eliminating a competitor. It is therefore essential to understand the reasons for an acquisition when creating a due diligence plan. IT Due Diligence becomes critical when the reason for the acquisition is to obtain the target company’s technology. The IT of the target company may be assimilated into the acquiring company or the target company may be run as a separate subsidiary.

7 Layer Due Diligence services can help buyers fully understand the cost and impact of IT on a given transaction. We can help buyers look for opportunities to improve business performance and reduce costs through better utilization of IT. We can help avoid business disruption and reduce risks for buyers by closely managing the IT-related aspects of each transaction.

The service is applicable to any type of business, from traditional “Brick and Mortar” sectors, where IT may be more of an enabler, to technology-focused companies, where the technology product or service is intrinsic to business performance.