​​​M&A Due Diligence

Assessing the IT capabilities of an acquisition during change​

While a great deal of due diligence goes into understanding the viability of the business and its value, the same level of rigor is typically not applied to evaluating its IT infrastructure and support staff. In order for the two companies to work together well it is important to understand the capabilities of the two IT infrastructures and where to integrate them, leave them standalone, or move both the old and new business to entirely new platforms.

Edgewater Consulting has a rich history of providing independent, pre-acquisition IT due diligence, focused on ensuring that the IT assets are as good as they have been portrayed, that they are capable of supporting the business objectives associated with the acquisition, and that there are no hidden risks that will require significant expense to remedy after the buyer takes ownership.

Critical Due Diligence Questions

  • Does an overall blueprint of the IT assets and how they interact with each other exist? (You would be surprised to learn how often it doesn’t)
  • Is there sufficient hardware/software redundancy to provide necessary uptime to the business?
  • Are there a disaster recovery plans? When were they last tested, and what kind of situations can they handle?
  • Do security practices match or exceed the required level of protection warranted by the business?
  • Does the infrastructure have the capacity meet or exceed the demands placed by the peak loads and growth in the business?
  • Are hardware and software assets so old that they are no longer supported and can’t be upgraded?
  • Is the technology stack compatible with the umbrella company’s technology stack?
  • Are there any strange or esoteric practices or standards that could introduce risk?
  • Do centers of excellence exist that can benefit the entire organization?