The key objective of IT due diligence in the pre-investment phase is to identify clear risks and opportunities that could impact both the structure of the deal and the economics of the post-investment phase.
The findings from IT due diligence at this stage can have a major effect on the size of investment and the ability to achieve the planned ROI. In some cases it may even terminate the investment process. So getting it right during the pre-investment phase is vital to success in both short and long terms.
For vendors planning to dispose of all or part of their business we provide:
- An Information Audit for identification and characterisation of IT issues which may impact the value of the business to potential buyers.
- Development and execution of a pre-sale IT risk mitigation plan designed to improve business performance, reduce risk and allow vendors to achieve the optimum valuation.
For purchasers/investors planning corporate acquisition or equity investment:
- An Information Audit identifies the areas of risk in the target IT that are relevant to the valuation of the target business and which can influence the negotiation process for more favourable purchase terms.
- Provision of a realistic assessment of the capability of the target IT to continue to support the business effectively in the post-investment environment and help realise business goals
- Development of a high level post-deal change and integration plan to provide a clear view of the likely costs, risks and opportunities around achieving post-deal strategies and ROI within the planned timescale.