Web Consultation

IT Due Diligence M&A Report

Image by Scott Graham

Gathering and analysing information is an iterative process that is ongoing throughout due diligence. Assumptions, risks, and budgets must be updated as new information is obtained.  Communication with the M&A team and business process owners should be constant throughout due diligence. IT integration does not exist in isolation.

The CIO has an obligation to explain the IT cost implications of the M&A to the business in order to ensure they understand the whole picture before they make their decisions. The CIO  also needs to collect information on both their own organization and on the target organization, analyze the information, and then make critical assumptions to define the resultant IT enterprise. By doing this, the CIO can provide the M&A team with the accurate cost information they require to make holistic decisions.

The IT Due Diligence process should work towards a report that contains the following:

Introduction: Outline of the merging organisations, including the drivers, assumptions and desired outcomes. 

Current State (Target Organisation): Evaluate and document the state of the target organisation as information is collected through access to the M&A data room, information request submissions, and on-site discoveries.

Current State (Own Organisation): After the information gathering phase on the target organisation is completed, take the opportunity to evaluate the current state of your own organisation.

Information Request: Develop high-level questions that will provide an end-to-end view of the target IT organisation.

 

Assumptions: Document assumptions (if needed) to justify the gaps, redundancies, initiatives, risks, and/or costs you have identified throughout the due diligence process.

Risk Register: Track and quantify risks as they are discovered throughout the due diligence process.

Project Scope: Identify gaps, redundancies, and initiatives that need to be addressed to realise the desired target technology environment.

Budget: Estimate the cost of IT integration based on the gaps, redundancies, and initiatives identified.

Change Log: Track major changes made throughout the due diligence process and identify the implications.

TGS has the tools and expertise to undertake the IT Due Diligence process and report.

NEXT STEP

To find out more, book a 30 minute FREE consult with John