M&A Technology Due Diligence
Technology Due Diligence is a comprehensive assessment of the information technology capabilities, systems, processes, and potential risks of a target company, often performed as part of a separation, merger, or acquisition process. The goal is to gain a clear picture of the company’s Technology landscape and its potential value, vulnerabilities, and costs associated with separation, improvement, or integration.
Our M&A Technology Due Diligence services include:
Technology Systems Review
This involves an in-depth review of the current hardware, software, and networking systems. It includes checking system availability, performance, scalability, and security, as well as reviewing system maintenance and upgrade schedules.
Technology Governance & Compliance
Reviewing the company’s technology governance structures and its compliance with industry regulations, laws, and best practices. This includes checking data privacy practices, technology policies and procedures, and any IT-related legal issues or liabilities.
Technology Strategy & Roadmap
This involves understanding the company’s technology strategy, including plans for growth or expansion, upgrades or replacements, and their alignment with the overall business strategy.
High-Level Cybersecurity Review
A general review of the company’s cybersecurity measures can identify potential vulnerabilities and recommend improvements. This includes reviewing physical security, network and system security, and user access controls. This could also identify the need for a deeper-dive cybersecurity review and/or testing.
Technology Financial Analysis
This entails reviewing technology spending and budgets, understanding the costs associated with maintaining and improving the current technology landscape, and identifying potential cost synergies or savings after an acquisition.
Technology Human Resources
The process involves a review of the technology staffing structure, the skills and experience of the technology team, and any outsourcing or vendor relationships. It also includes an analysis of the company’s technology culture and its ability to adopt new technologies or practices.
Technology Risk Management
This is comprised of evaluating the company’s technology risk management practices, including its disaster recovery and business continuity plans, data backup and recovery, and cybersecurity measures. This includes an assessment of any previous security incidents and the company’s response to them.
Technology Data Management
This includes an assessment of the company’s data management practices, including data quality, data governance, and data architecture. It also includes understanding the company’s use of data analytics or business intelligence.
The outcome of our technology due diligence service is typically a detailed report that outlines the strengths, weaknesses, opportunities, and threats associated with the target company’s technology landscape. This report provides valuable input for the decision-making process during an acquisition or merger.