IT Due Diligence

Confidence in IT when acquiring or selling a business

The heavy reliance on Information Technology (IT) for business operations, management information and financial reporting in today’s business environment makes IT a priority for consideration during the acquisition process.

Not only does IT often count among the largest capital and operational expenditure items, but the owners of a business must also find better ways of delivering value and leverage from their IT assets.

CCL realies that:

• Purchasers need confidence that the IT assets supporting the business are up to the task
• Purchasers must have a clear view of any IT investment required to achieve the prospective earnings of the business being acquired and factor these costs into their calculations and negotiations
• Vendors need to secure the best possible sale price. Identifying, mitigating against and then addressing IT issues with transaction relevance prior to the sale
• Vendors and purchasers both need to minimise the impact of the sale and transition process on business operations

CCL have regularly been engaged by organisations to undertake IT Due Diligence relating to prospective acquisitions and mergers. CCL’s approach is detailed, practical and constructive. CCL’s work is conducted by a Due Diligence Team offering a wide range of functional skills and possessing substantial experience of mergers, acquisitions and business integration.

Are you:

• An equity buyer targeting a business with the intention of creating incremental value by improving business performance?
• A trade buyer looking to strengthen your company’s core business by acquiring a rival or complementary product?
• Disposing of part or all of a business?
• Seeking to gain synergies or economies of scale by combining businesses or business units?

CCL can assist you:

• By providing buyers with a detailed understanding of the cost and impact of system related issues that are relevant to the transaction
• By identifying opportunities to improve business performance through enhanced IT enablement and cost reduction
• By providing purchasers with options and strategies for managing the IT related aspects of a transaction to avoid disruption to the business operations and thus reduce risk
• By identifying IT systems options (and the capital required) for achieving post deal strategies that are being considered during a transaction
• By providing purchasers with greater certainty that the IT systems supporting the target businesses are fit for purpose and identifying resources critical to continued business as usual operations

Alongside its core and extensive IT skills, CCL has consultancy resources that embrace specialist skills from Human Resources, Sales, Marketing, Operations and Finance functions. CCL’s Due Diligence team has substantial merger, acquisition and integration experience whilst working as Senior Executives within acquisitive businesses.