Solutions
IT Mergers & Acquisitions
Helping you succeed in transactions
The speed of change and growth in prominence of technology is unprecedented. Within a short timescale we have seen an evolution: from technology as an enabler of back-end processes, through to technology underpinning most, if not all of an organisation’s functions and fully establishing itself as a key disrupter, differentiator, and revenue driver. Within the context of an M&A transaction – for buyers or sellers – this means technology now represents both a valuable opportunity as well as a considerable risk in equal measure.
What we do
At Deloitte, the M&A Technology team advises organisations on maximising the value and offsetting the risks of technology in M&A transactions. We combine a sharp focus on commercials with technology expertise, so you understand the impact of our advice on your valuation of the deal. We can support you from the deal origination to the post-deal completion, assisting you with both transaction priorities, future growth ambitions as well as restructuring advice.
We work with corporate and private equity clients on both the buy side and the sell-side of transactions, related IPOs, as well as post-closing solutions such as (Post Merger) Integrations or Separations. We have dedicated IT Due Diligence practitioners in Switzerland that can draw on assistance from our large Technology Consulting teams, Audit & Assurance teams and Risk Advisory teams, including dedicated Cyber diligence colleagues to offer a comprehensive view of a transaction.
Pre-deal & Vendor assist services
Many organisations underestimate the importance of IT in the due diligence phase, leading to a partial understanding on challenges, risks and potential investments that may be required during the separation or integration execution. Our IT Due Diligence services support you maximize the success of your deals by:
Sell-side and Vendor Assist
IT Due Diligence
Technology Due Diligence
Sell-side and Vendor Assist
Our approach is hands-on and pragmatic, based on many years working alongside our clients.
M&A Technology sell-side & vendor assist services
- Exit readiness preparation:
Helping identify and build a programme early in the ownership of an asset to realise greater value at the exit - Vendor assistance:
Supporting a seller and their M&A and IT management teams in shaping and presenting the deal story, preparing information, and the technology function, for the sale process
- Separation preparation:
Delivered as part of vendor assistance, support for organisations in identifying IT separation challenges, and presenting the IT stand-alone cost base to buyers - Vendor IT due diligence / IPO:
Working with the seller`s M&A and IT management teams to deliver an independent and robust assessment of the implications of technology on the seller`s business plan
IT Due Diligence
IT Due Diligence provides a view on IT as a support function. It assesses the IT organisation, applications and infrastructure, IT security and hosting, IT spend and (internal) IT project roadmap in order to determine any key risks or additional investment areas that should be included in the purchase price discussions.
Our IT Due Diligence services include:
- Red Flag Report to assess the target’s current state and flag any key associated risks.
- IT Due Diligence Report to deep dive into the target’s current state and develop a solid understanding of the potential upsides, challenges, risks and potential investments required.
Technology Due Diligence
Technology Due Diligence provides a view of IT as a commercial product or service (as a core business). It is an assessment of the technology products and services, the commercial IT/R&D organisation and the related IT/R&D spending, in order to determine key (cyber-) risks or additional investment areas that should be included in the purchase price discussions.
To ensure a successful M&A transaction, our Technology Due Diligence assessment includes:
- Assessment of target’s software and technology products and services, and associated key functionalities.
- Evaluation of target’s R&D organisation and its alignment with the IT organisation if different.
- Overview of project methodologies and tools used for development phases including testing processes with clients and business partners.
- Evaluation of technologies used to develop target’s software, technology products and services.
- Assessment of existing initiatives to ensure compliance aspects with local and international regulations on security, data localisation, data privacy and protection. Evaluation of cybersecurity drivers' maturity in terms of strategy, infrastructure, and technology resilience.
- Analysis of overall product development and R&D spending (historical, current and forecast, OpEx/CapEx, nature of spending).
IT Restructuring, Integration & Separation services
Following the successful announcement of a deal, our team of experts is ready to help you understand the implications of an integration or separation from an IT perspective. We work with clients to maximise the deal value through an appropriate employment of technology solutions and by promptly addressing and managing IT-related risks. Our Technology Due Diligence services support you maximize the success of your deals by:
IT Restructuring
IT Integration
IT Separation
IT Restructuring
Our approach is hands-on and pragmatic, based on many years working alongside our client:
Short term M&A Technology-related services
- Enhance solutions enabling remote working
- Increase of Cyber security
- Update to Enterprise Recovery Procedures
Medium term M&A Technology-related services
- Review and re-negotiate contracts
- Assessment of IT cost base
- Reduction of power hungry processes
- Quick wins to simplify the IT estate
- Consolidation of any duplicate elements of infrastructure, both on premise and in the Cloud
IT Integration
If you are looking to acquire a company or are already just before or after Closing, Deloitte’s expert technology team in Switzerland can provide you with leading capabilities and experience. Without the background, knowledge, proven and tested methodologies and tools, or the right governance and structures in place, the integration itself can become difficult to steer, costs may exceed expectations, and synergy benefits may never be realised.
Our approach is hands-on and pragmatic, based on many years working alongside our clients.
M&A Technology integration services include:
- Assistance with transaction vision from a technology perspective
- Design of the technology solution for two businesses merging
- Delivery of day one design and planning
- Co-develop and manage the technology integration
- Technology integration, strategy and post-deal execution, cut over and testing
IT Separation
Helping companies unlock their potential to grow by addressing legacy and funding issues.
Many businesses currently find themselves in a position where they are unable to prosper and grow on account of one or a combination of the following factors: financing constraints, the diverging priorities of their stakeholders, underperforming businesses, distracting or capital draining non-core assets. Deloitte’s expert technology team in Switzerland can provide you with leading capabilities and experience to support and drive your planned separation.
M&A Technology separation services include:
- Cost and technology risk analysis
- Technology separation diligence and planning
- IT separation risks and IT TSA negotiation support
- Day one and end state IT solution design
- Day one and end state IT planning
- Delivery support including developing the technology aspects of the business plan, advice on execution sub-contractors, technology guidance and management to day one and end state
Contacts
Recommendations
Estimating, classifying and allocating M&A IT costs
A three-step approach to M&A IT costs