M&A Due Diligence
Information Technology due diligence is usually performed in the last stage of the merger & acquisition (M&A) process. Information Technology (IT) Due Diligence is as important as financial, tax, intellectual property, legal, and employment diligence. An IT Due Diligence assessment can pinpoint areas of concern or unanticipated weaknesses which can then be addressed in the negotiation process. Further, it can prevent you from assuming more risk than is necessary or advisable. Ensuring that our clients make informed investment decisions is our goal.
RCG has been providing our clients with exceptional services for over three decades. Our analysis highlights the IT strengths and weaknesses of an investment or M&A target. We understand what documentation and materials to examine, how to interview staff and how to interpret and evaluate the information provided. We act as an objective third-party who can assess whether the target's IT posture justifies your investment, and we provide you with accurate information that will put you in the driver's seat during negotiations or when the time comes to secure financing for the transaction.
“IT due diligence has been neglected in virtually all of the literature addressing the nature and scope of conventional due diligence. The end result may be imprudent investment or no investment, either of which may be economically undesirable… ”
Generally speaking, an independent IT Due Diligence assessment should be included as an integral part of any transaction where one or more of the following conditions or circumstances exist:
- There is limited in-house expertise to perform systematic analyses of complex IT issues, or it is necessary to minimize impacts on such internal resources.
- The complexity of the technology environment necessitates an interdisciplinary team approach during the assessment.
- A prompt response is required and can only be assured by a dedicated team.
- Potential conflicts of interest must be avoided.
- Sophisticated, obscure or abstract IT issues must be translated into a meaningful format for investment and management decision-makers.