Performing IT Due Diligence Prior to a Merger & Aquisition
In a rapidly evolving and uncertain marketplace, ensuring you maximize value and minimize risks throughout each stage of the transaction lifecycle from pre-transaction IT due diligence to post-transaction execution is top priority.
Cherry Bekaert’s team of Digital and Deal Advisory professionals will guide you through all areas of the transaction life cycle to maximize the return on your investment. Our Digital and Deal Advisory and Transaction teams have extensive experience with intricate transactions across multiple industries. We recognize the unique and complex aspects of mergers and acquisitions (M&A) and offer a full suite of comprehensive services, including IT due diligence, for both private equity investors and business operators – to accomplish their financial goals.
Our team leverages decades of experience to provide valuable insights into due diligence areas such as Financial, Tax, IT, Technical, Cybersecurity, Insurance and Benefits.
We Provide Two Types of Technology Due Diligence Assessments
IT Due Diligence
What is IT Due Diligence?
IT due diligence is an assessment performed on any company with a business that is supported or enabled by IT and digital capabilities with the aim of uncovering performance, liabilities, key risks, and opportunities in connection with a merger, acquisition, or disposition transaction. The purpose of an IT due diligence is to increase valuation, minimize transaction risks, and realize greater returns for investors.
Importance of IT Due Diligence?
In a volatile marketplace, the potential for technology to make or break a sale or acquisition has never been greater. The cadence of an ever-changing technology landscape introduces considerable financial and operational challenges to completing successful transactions. Meaningful and early IT due diligence to assess risks and inefficiencies is paramount to maximizing the value of a potential acquisition, sale, or investment.
Using an agile and flexible approach to due diligence, we evaluate the technology infrastructure including security practices, business operations, software and DevOps, and infrastructure, examining each area with a focus on people, process, technology, and culture.
Technical Due Diligence
What is Technical Due Diligence?
Technical due diligence is essential in conducting successful M&As and investments. Technical due diligence is an in-depth evaluation of the technical condition of the product or service and the assessment of possible risks. This includes analyzing the technology architecture and infrastructure, code and data quality, decision-making processes and workflow, scalability, security, skillsets, and intellectual property matters.
Why is Technical Due Diligence Important?
Sound technical due diligence enables investors and start-ups to allocate their financial resources for the best outcome. Immature infrastructures and/or poor code quality may require significant investment hindering a transaction from progressing. Performing a technical due diligence provides investors and startups with verification of a product’s or service’s real value, defines potential risks and pitfalls and details growth potential – to reach their investment objectives.
Making the Digital Connection to Private Equity
Cherry Bekaert’s IT due diligence and technical due diligence service forms part of the firm’s comprehensive Deal Advisory practice supporting buy-side and sell-side merger, acquisition, and disposition transactions.
Our Digital and Deal Advisory professionals recognize the unique and complex aspects of M&A activity and offer a full complement of services with an adaptable and scalable approach.
Our Private Equity Experience
- 570 + deals over the last two years.
- Transaction values: $10 million to $800 million +.
- We have active working relationships with more than 250 private equity, venture capital, private investment firms, SPACs and investment banks combined with practical experience gained from serving 1,300+ PE-backed portfolio company clients.
- 2,100 transactions with cumulative transaction values in excess of $130 billion.
