M & A

What is IT Due Diligence?

The need for IT due diligence for M&A decisions is more critical than ever in today’s fast-moving business environment. As technology becomes more integral to how businesses operate, companies need to ensure that their systems are secure and performing optimally to make a success of their merger or acquisition. This means that conducting a thorough assessment of technology architecture is critical to the process. The goal is to be absolutely positive that the target company’s IT systems are in order. That all the essential information is collected and taken into consideration before making any decisions. Furthermore, IT due diligence should also include an extensive search into potential security risks, risks of vendor lock-in, and scalability. Other issues, such as the road map to a smooth transition of IT systems during the integration process are a high priority.

An elaborate assessment of:

  • IT business strategy
  • Business process & application architecture review
  • Technology infrastructure and service operations
  • Disaster recovery / Incident response
  • In-progress technology projects
  • Data management practices
  • Cybersecurity

Sell Side Considerations

  • $ Tech Upgrades for higher valuation (dress up)
  • Reduced exposure to future liability
  • Enhanced desirability for acquisition
  • Get to LOI faster by highlighting work
  • Reduce liability post-merger

Buy Side Considerations

  • Assessment results as part of buyer negotiation
  • Rationale & synergy alignment
  • Include upgrade cost in the purchase price
  • Services agreements, reps & warranties
  • Loan qualification includes Cybersecurity

Value Realization & Creation

  • Realization of synergies
  • Execution of post-merger integration plan
  • Shorten the close time frame by 15%
  • Viable growth initiatives

Post Merger

  • Smooth tech integration (planning)
  • IT functions
  • Achieve business objectives
  • Realize expected synergies

Benefit to M&A Transactions

  • Dealmakers & Stakeholder decision making insights
  • Adds transparency to the transaction
  • Could make the acquisition more attractive
  • Give a reason to walk away

Cyber Security Influences M&A Decisions

  • Understanding the risk profile
  • Disaster recovery?
  • Regulatory certifications & audits
  • Director & Officer liability

Why Technology Xtreme?

  • IT with a transactional perspective
  • Vendor agnostic
  • Help you get to close faster
  • Dealmaker and Stakeholder friendly
  • Document & Implementation Deliverable
  • Proven DD methodology