Transaction Services: Assessing IT and Operations

Companies preparing for mergers or acquisitions often overlook information technology (IT) and operational factors. These elements are among the most common reasons transactions fail to achieve the objectives set forth in an investment thesis.

West Monroe Partners’ IT and operational due diligence consultants can help. Through our work on over 500 transactions, we are a recognized leader in IT and operational diligence in the private equity market.

West Monroe Partners supports you before the transaction.
Traditionally, acquisition due diligence has focused on financial valuation, legal matters, and risk management. But as businesses have become more reliant on IT to improve the customer experience, drive data analytics, contain costs, ensure compliance, and measure performance, IT due diligence has become increasingly critical.

Understanding IT maturity and its ability to support the investment thesis is critical to success and long-term value creation. Strategic and financial buyers alike seek out our proprietary methodology for:

  • Quantifying risks, especially as it relates to a carve out or integration
  • Determining whether the acquired technology can scale or be integrated with an existing portfolio company technology
  • Avoiding costly surprises after closing
  • Identifying potential business improvement opportunities through IT or operational innovation, including hidden sources of value
  • Assessing how unique the technology may be and the respective barrier to entry

We help you make sure planned synergies live up to expectations.
Integrating data, systems, and processes while maintaining a business-as-usual environment is difficult and distracting.

  • Do you understand the true cost and duration to merging two entities?
  • Do you have a plan for combining systems and processes, and are you able to execute upon it?
  • Is combining systems and processes taking valuable attention away from your primary operations?
  • Do you have experienced resources to manage and execute the entire effort?

Moving beyond complex transition issues requires a well-designed plan and the ability to execute—quickly and flawlessly. We do this every day and can help you minimize the risks, accelerate the transition timeline, and capture synergy value expected from the transaction sooner.

  • Prepare for closing—negotiating with vendors and defining a Transition Services Agreement (TSA)
  • Execute separation and stabilization plans—migrating data, taking steps to minimize customer loss, and creating a transition management office to oversee the myriad details involved throughout the post-close period
  • Integrate operations and capture value—delivering near-term synergies through staff reductions, elimination of redundant processes, or consolidation of processes into shared services centers
  • Transform and optimize operations to deliver long-term value—re-engineering processes, rebuilding culture, and transforming operations to the desired future state
Portfolio Services: Transforming IT & Operations

You count on your portfolio investments to generate growth and profitability as well as deliver on your investment thesis. To do this effectively, your company must maintain a delicate balance between immediate priorities, operational improvement, and long-term vision. This can be a real challenge for most middle-market organizations. West Monroe Partners’ business acumen, technical expertise, and understanding of key performance metrics can help your organization answer yes to the following questions:

  • Does your portfolio company have a clear understanding of the operational and technology initiatives it must undertake to be successful?
  • Is the IT or Operations Strategy aligned with the Business Strategy?
  • Do your executives have sufficient visibility into the company’s fundamental operational and financial metrics—insight that enables them to make decisions quickly and effectively?
  • Can your portfolio company’s internal resources deliver critical new processes and technologies for sales and marketing, finance, or the supply chain?

Your investments will not deliver shareholder value through financial engineering alone.
They require consistent execution and the ability to capitalize on opportunities available by transforming technology and operations. Your portfolio companies must be able to identify and execute the right projects, as well as measure and report on effective operational metrics to guide future decision-making.

Our Private Equity practice applies industry, operational, and technology expertise and experience to help your portfolio companies deliver on your investment thesis.

Our proven methodology supports transactions from the initial due diligence and post-close integration through portfolio management. Our experience enables us to work with portfolio companies to:

  • Conduct IT assessments, develop IT strategies, and define roadmaps for executing on strategy
  • Provide the program or project management expertise necessary to complete critical operational and technology initiatives
  • Improve productivity and efficiency by redesigning key processes
  • Improve performance management by consolidating data, eliminating manual data manipulation and inconsistencies, and delivering better business intelligence
  • Minimize capital investments in IT infrastructure by utilizing appropriate outsourcing, managed services, and cloud-based technologies
  • Improve profitability by increasing operational throughput and scalability, while maintaining IT efficiency
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