IT due diligence
Primary business processes now rely extensively on IT, and it is vital for businesses that the IT environment works properly. The quality of IT and a proper understanding of the risks are key elements in a successful business acquisition, and IT is becoming an increasingly prominent part of due diligence reviews. By integrating the IT component into our Due Diligence, we map out the condition of the IT infrastructure (technically and functional), establish what costs are involved and if you wish where the IT environment stands in relation to the buyer’s plans for integration. The findings from this review can be taken on board when deciding whether or not to complete the takeover, during the negotiations or after the takeover, by making allowance for the principal IT risks.
What an IT due diligence involves
An IT due diligence can cover the following issues to establish the threats to the takeover:
- Information systems and how they support organisational processes, including management information;
- IT costs for hardware and software and the management organisation;
- IT organisation and dependency;
- Condition of the technical infrastructure and information security;
- IT management processes and continuity safeguards;
- Contracts with IT vendors.
Our review can also include possibilities for isolating specific IT components. Based on our findings and a risk analysis of the IT environment at both the target company and the buyer’s organisation, we can estimate the possibilities, limitations and projected capital expenditure of integrating the separate IT environments.
