Manage your operational risks during M&A through IT due diligence
Why IT due diligence matters
Companies pursuing mergers and acquisitions (M&A) tend to focus on their financial and legal aspects while ignoring operational aspects directly related to IT. This often affects anticipated financial outcomes, as businesses may give little consideration to the costs, timing, and complexity of IT implementations or related operational risks.
- conducting an independent in-depth analysis of the current state of your IT function;
- advising you on IT governance throughout the transaction;
- formulating a list of resources required for IT to operate seamlessly;
- estimating M&A costs and the integration’s potential benefits;
- identifying potential gaps in IT services that need to be addressed in a service level agreement (SLA) to ensure business continuity after the M&A.
- determining major risks and operational constraints;
- finding revenue and margin growth areas that IT can unlock;
- improving service quality through IT;
- analyzing the financial investments made during the M&A transaction and those that will be required in the future;
- assessing your existing IT service providers and outsourced services;
- analyzing critical components of IT integration;
- assessing the IT function’s ability to support your core business objectives after the integration.