Make IT a Partner in Successful M&A Due Diligence
Get IT involved in the M&A process pre-close to help ensure post-close success.
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Lack of IT involvement early in an M&A transaction results in:
- Lack of alignment between IT & M&A business goals
- Ineffective integration planning and execution
- Poor risk identification and mitigation
- Inaccurate budgeting resulting in underestimated integration costs
Getting IT involved early in an M&A transaction results in:
- Greater alignment between IT and the business
- Quicker, more informed decision making
- Effective risk management
- Faster and smoother post-M&A integration
- IT being positioned as an innovation driver
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Onsite Workshops offer an easy way to accelerate your project. If you are unable to do the project yourself, and a Guided Implementation isn’t enough, we offer low-cost onsite delivery of our Project Workshops. We take you through every phase of your project and ensure that you have a road map in place to complete your project successfully.
Book NowModule 1: Launch Due Diligence
The Purpose
- Determining IT’s current capability to support an M&A transaction.
- Identifying the goals and objectives the business has for the M&A.
- Gaining the buy-in of the M&A team and executive management for IT’s involvement with M&A due diligence.
Key Benefits Achieved
- Capability for IT to successfully support the business throughout the M&A transaction determined.
- M&A business goals and objectives identified.
- IT due diligence team selected.
- Gaining buy-in for IT’s involvement in M&A due diligence.
| Activities: | Outputs: | |
|---|---|---|
| 1.1 | Complete & review M&A health check |
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| 1.2 | Gain executive buy-in for IT involvement in M&A due diligence |
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| 1.3 | Identify M&A business goals and objectives |
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| 1.4 | Assemble the IT due diligence team |
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| 1.5 | Define success metrics |
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Module 2: Gather Information
The Purpose
- Taking a structured due diligence approach that properly evaluates the current state of each organization involved in the M&A transaction.
- Retrieving critical information from the target organization to help determine the attractiveness of the M&A target.
- Examining the needs of each organization based on analysis of application and data, infrastructure, IT people, and IT processes at each organization.
Key Benefits Achieved
- A clear understanding of the steps that are involved with gathering information on both the target organization and the buying organization.
- Recognition of the various methods of collecting information from the target, the iterative nature of the collection and documentation process, and the format in which information should be recorded.
- Understanding the considerations that need to be made when looking at the current state of each organization.
| Activities: | Outputs: | |
|---|---|---|
| 2.1 | Determine the business capabilities of the target organization |
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| 2.2 | Prepare a list of questions for the target organization |
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| 2.3 | Create a strategy for on-site discovery |
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| 2.4 | Retrieve or create a business capability map for the buying organization |
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| 2.5 | Identify the master data domain, data sources and system of record at the buying organization |
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| 2.6 | Retrieve (or create) an applications inventory and map to business capabilities at the buying organization |
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| 2.7 | Identify and consider infrastructure at the buying organization |
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| 2.8 | Identify and examine important IT processes at each organization |
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| 2.9 | Retrieve (or create) an IT organizational chart and examine the current IT staff at the buying organization |
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Module 3: Perform Analysis
The Purpose
- Understanding how the business sees the resultant capabilities in the newly formed organization and determining the best way to support them.
- Selecting a target technology environment that is aligned with the business objectives for the M&A.
- Identifying gaps, redundancies, and initiatives for each business domain, and selecting the appropriate IT integration strategies to achieve the target technology environment.
Key Benefits Achieved
- Identification of the ideal post-M&A target technology environment.
- Recognition of the key considerations when determining the appropriate combination of IT integration strategies.
- Vision of the IT organizational design for the resultant enterprise.
| Activities: | Outputs: | |
|---|---|---|
| 3.1 | Define the resultant enterprise capability map |
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| 3.2 | Select the target technology environment |
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| 3.3 | Analyze data and application gaps and redundancies, then determine the IT integration strategies |
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| 3.4 | Identify the resultant enterprise’s infrastructure needs |
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| 3.5 | Identify IT process gaps and redundancies |
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| 3.6 | Identify IT people needs and redundancies |
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Module 4: Estimate Costs
The Purpose
- Developing assumptions to estimate the remaining capital and operating costs that have not yet been reflected in the integration budget.
- Preparing the IT Due Diligence Report for final submission to the M&A team.
Key Benefits Achieved
- Recognition of how to create an IT integration budget for the M&A transaction during due diligence.
| Activities: | Outputs: | |
|---|---|---|
| 4.1 | Develop assumptions to close remaining M&A gaps |
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| 4.2 | Finalize IT investment costs and synergies |
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| 4.3 | Finalize the IT Due Diligence Report |
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