Mergers & Acquisitions (M&As) are among the most intense and challenging activities in business. Managing the IT integration risk associated with a merger has become a major component in determining the ultimate success or failure of M&As. Expectations regarding cost savings and economies of scale often focus on IT. In fact, IT plays a critical role in determining how effectively the merged organization is able to integrate processes and people, as well as deliver products and services to internal and external customers.
When approaching a merger, it’s critical to assess the details of how a company is run technically, how it is protected from a cybersecurity and privacy perspective, and what gaps may limit the success of product or technical integrations with another company.
You need to know which systems and capabilities are critical to realizing benefits, including web properties, enterprise software systems, information security, and CRM.
An IT due diligence delivers tangible value by:
Helping the acquiring party understand what they are really getting in terms of IT; and
Creating a roadmap to jump-start post-merger integration.
Litcom has developed a comprehensive IT Due Diligence Program leveraging our detailed IT Assessment methodology. As part of our IT Due Diligence process, we address our client’s requirements to understand an acquisition target’s IT environment. Litcom will review existing IT strategies, planned initiatives and commitments, a full breakdown of all direct and indirect IT costs, the current IT organization structure and resource skills, the technology infrastructure platform and environments, the application portfolio and any exposure to vendor / third party obligations.
Thorough understanding of technology-dependent business objectives.
An inventory of all IT priorities, organization and capabilities, processes, and costs including all existing and planned contractual obligations.
An IT Acquisition Risk profile including mitigation strategies and associated high level costs for the recommended IT initiatives and priorities.
We have supported a variety of business ownership transitions – from IPO, to acquisition (both sides) to divestiture. We help clients assess and close value gaps as they prepare for an acquisition or IPO. On the buy-side, we perform due diligence on acquisition targets from a technology perspective, support the integration of newly merged businesses and execute business unit divestitures.
For an M&A event to be successful, the integration of financial, operational and organizational systems needs to be completed in a way that ensures the business continues to run smoothly. We deliver insightful preparation and skilled integration to provide your executive team with the confidence to move forward.
Our expert team oversees the integration of processes, people, culture and technology and adds objectivity in decision-making to avoid politically influenced or technology-driven mistakes. Our mission is guiding the transition to ensure that the original intent of the merger or acquisition is realized.
Questions We Help Answer
How do we ensure a smooth systems integration with minimal disruption that maintains our business objectives?
Which resources do we need to join our systems and people together successfully?
What preparation can help us avoid a failed M&A integration?
Inadequate due diligence is one of the primary reasons that M&A transactions fail to achieve their intended results. We don’t just run through the routine, surface-level questions; we know how to dig deep by having conversations with people working in the operations of the business to discover problems that standard due diligence methods miss.
Our unique approach to due diligence has been proven to reveal issues that even the most sophisticated firms overlook. We help you reduce time to integration, avoid high liability and realize favorable clawbacks.
Questions We Help Answer
What are the elements of an in-depth due diligence method?
How do we resolve uncovered issues?
How do I ensure my business is set up for a successful transaction?
Litcom provides Merger & Acquisition IT Advisory services that enable our clients to understand the full IT risk profile of M&A transactions and determine the most effective way to integrate new organizations. We deliver IT Due Diligence services as part of an overall deal analysis and IT Post Merger Integration services upon completion of transactions. For more information, please contact us.
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