Hey everyone!
I firmly believe that a pre-deal I.T DD can add significant intrinsic value to a transaction. Areas such as Systems and Controls, Value and complexity of critical business applications, Licenses and agreements, and much more can reap significant benefits to an Acquirer company if I.T DD is thoroughly completely pre-deal.
Systems access and controls
Key advantages for the Acquirer WITH a pre-deal IT due diligence
– Financial decisions based on accurate financial data
Key advantages for post-deal integration WITH a pre-deal IT due diligence
– Fewer surprises on the anticipated EBITDA
– Costs of integration and change management known and managed
Value and complexity of critical business applications
Key advantages for the Acquirer WITH a pre-deal IT due diligence
– Known value of IT assets
– Complexity well evaluated
– Estimated costs (time and money) to transition
Key advantages for post-deal integration WITH a pre-deal IT due diligence
– Planning and mitigation of operational issues, significant financial and technical issues taken into account
– IT licenses and agreements (Software, services, outsourcing, hosting, development and IT support)
Key advantages for the Acquirer WITH a pre-deal IT due diligence
– Cost evaluation of known and expected licenses
– Reduction of legal and reputational risks
Key advantages for post-deal integration WITH a pre-deal IT due diligence
– Migration project plan takes into account license management
– Needs assessment licenses in line with their cost of magnitudes
– Scalability and sustainability (Infrastructure, networking, office automation, telephony, Web and applications)
Key advantages for the Acquirer WITH a pre-deal IT due diligence
– Estimated IT operating costs (time and money) known and held in an account in the price of the transaction
…And many more! What are your thoughts?