IT Due Diligence
Anticipating the cost of technology
IT is increasingly a key factor in enabling post deal business development initiatives, and successful integration and separation programmes.
Identifying the need
Due to the financial focus and the confidential nature of M&A transactions, IT departments are often not consulted until late in the process. This often adversely affects the anticipated post deal financial results as IT costs and timescales can be underestimated/misunderstood.
What we do
At Deloitte, we have a range of pre and post transaction core services, tailored to suit individual client’s challenges, to help ensure that IT is a successful enabler for the transaction lifecycle.
We regularly work with both corporate and private equity investors, on both the buy and sell-side of transactions, and on IPOs. We have a dedicated IT Due Diligence team and bring in specific technical and industry experts for each transaction from our extensive technology consulting business.
We work either as part of a combined diligence team, together with our financial, tax, operational, commercial, risk, cyber and other diligence colleagues, or on a standalone basis for our clients.
Key pre- and post- transaction services include
- Core IT Diligence: We assess the reliability and scope and opportunities arising from IT applications, processes, infrastructure and teams, and how well they meet current and future business.
- We assist clients in the assessment and quantification of IT synergies to develop robust synergy cases that can stand up to private and public reporting if required.
- We provide product due diligence services, reviewing the capabilities of IT products versus claimed benefits, competitors’ offerings and against market developing capabilities
- We review Transitional Service Agreement design, construction, costing, dependency and risks, and help create them for sell-side situations.
- Integration and separation support and planning: We help clients realise the intended benefits, identifying risks, barriers and enablers – including dependency on IT and stand-alone IT separation considerations.
- We assist clients in planning for and driving through the integration of acquired businesses, focusing on securing value and managing risk in the first 100 days post-completion.