IT and Operations Due Diligence
Smart buyers know due diligence doesn’t stop with the financial reports.
More than half of all post-merger synergies are IT-related, and all will impact operating performance.
IT due diligence
Today, most organizations’ information technology business applications and infrastructures are critical components of their business operations. IT due diligence can reveal various technology problems and operational concerns that lead to unanticipated investments that might be necessary after the deal closes.
Effective IT due diligence efforts can potentially help you uncover significant issues, including:
- Contingent liabilities, such as run-away or failed software development projects
- Unsupported or end-of-life systems
- Inadequate information security
- Integration and IT organization issues
- IT data and security risks
- Future business opportunities made possible by the target’s IT systems
Our consultants understand business, custom-developed IT applications, infrastructure, operational and technology strategy, and risk defined controls in dynamic, growing middle market organizations. We provide private equity groups and other buyers and sellers with strategic, pragmatic advice that allows them to understand and appropriately leverage the target’s IT capabilities.
Operations due diligence
When acquiring a new business, you want to understand its operational skills, processes and capabilities. You also want to identify improvement opportunities that can yield increased EBITDA.
Our structured, industry-specific approach helps you assess key operational capabilities, risks and gaps from operations and related technology capabilities. It allows you to understand and prioritize those opportunities to refine your integration strategy for your potential merger or acquisition. Our consultants can make a broad evaluation of each functional area or do a “deep dive analysis” depending on the target’s talent, best practices, and performance relative to industry peers. Our operations due diligence advice will provide critical input to define your post-merger operational improvement initiatives.
RSM due diligence experience and knowledge also extends into financial and tax due diligence:
Before you do the deal, call us. Our experienced consultants can help you paint a truly insightful picture of the current realities and future possibilities. You’ll be glad you called.