IT Due Diligence.
Don’t leave success to chance.
On the buy side, detailed IT due diligence ensures that IT-related potential and risks are identified at an early stage.
This avoids unpleasant consequences for the buyer, such as unanticipated additional costs to ensure day-one readiness, unresolved liability issues such as suddenly discovering that the necessary licenses were not included in the sales agreement, or the realization that the planned purchasing and IT synergies cannot be achieved. In the worst-case scenario, the entire acquisition is brought into question.
IT Due Diligence – on the lookout for deal breakers.
IT due diligence provides clues to the likely complexity of any post-merger integrations and establishes whether the technical IT prerequisites exist to realize the intended synergies.
This provides buyers with more security during contract negotiations and pricing as well as an early indication of how complex an undertaking it will be to integrate the IT organization of the acquired company into the IT organization of the new parent company. In many complex cases, where it does not make sense to remove processes completely from the seller’s area of responsibility, transitional service agreements must also be concluded.
GAMBIT’s IT due diligence focuses on aspects including:
- Comprehensive analysis of the IT organization of the company to be purchased
- Evaluation of the IT strategies of both companies and the potential for synergy
- Assessment of specialist employee knowledge (key man risk)
- Examination of the application landscape, looking for risks that may affect subsequent integration (for example, software releases, custom developments)
- Inventory of the existing IT infrastructure
- Risk assessment and recommendations regarding price reduction clauses in purchase contracts
- Assessment of financial requirements (CAPEX/OPEX)
- Achievement of a smooth handover on day one without disrupting operations (day-one readiness)
- Recommendations regarding transitional service agreements (TSA)