Due Diligence/M&A Execution
With the technology advancements that have been made over the past 10 years no longer should the technical component of the Due Diligence effort be strictly comprised of the likes of physical computer hardware assets, vendor contracts and financial application security (to comply with SOX regulations). If organizations want to maximize their investment and to avoid “surprises” after the acquisition then further attention should be given to business requirements that drive Information technology change. The answers will help identify the capital expenditures that may be required to improve the investment.
Below are a few examples of the Wright Technical Due Diligence method and approach:
- Interview Business leaders for upcoming growth plans and areas where they are spending high dollars for “technology related” expenses. It is very important that the chargeback mechanism is fully understood – i.e. all technical costs may not be in the IT budget.
- Level set growth plans with executive management and marketplace trends to get some timeline in terms of implementation schedule to stay competitive.
- High-level development and implementation costs should be estimated – for top 1-5 priority projects to insure that expectations are accurately managed. The resource assessment may need to be done to evaluate project management , requirement definition and testing capabilities.
- Organizational development risks need to be identified (SWOT- strengths, weaknesses, opportunities and threats) and risk mitigation plan defined with associated costs.
Service Specifics
- Technical Due Diligence preparation for a potential sell
- Technical Due Diligence performed for a merger and acquisition
- Project planning and associated resource planning to execute on identified M&A synergies
- Getting Technical Due Diligence “Wright” - speakers series
Value
- Technical due diligence is performed by an expert that has both audit training from Price Waterhouse and actual executive management experience for large financial institutions as General Mills and MBNA
- Technical and business objectives that are likely to impact long-term investment planning can be readily identified by an expert with 20 years experience in mergers and acquisitions
- Cultural, organizational impacts that can be a risk to the organization are more likely to be identified and quantified by the experienced technology manager than the outside audit team
- Synergy analysis and execution needs to be tailored to the particular situation and usually requires a collaborative effort between target and acquirer management team - an experienced technical executive can work the compromise to successfully, accurate scope the level of effort
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