Companies preparing for acquisitions or mergers often overlook information technology (IT) and operational factors. These issues are among the most common reasons why 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 325 transactions, we are a recognized leader in IT analysis and operational improvement solutions in the private equity, investment banking, and venture capital markets.
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 enable growth, contain costs, ensure compliance, measure performance, and support decision making, 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
- Determining whether the acquired technology and processes are compatible, easily integrated, and can be leveraged to scale the business
- Avoiding costly surprises after closing
- Ensuring data quality, integrity, security, and compliance
- Identifying potential business improvement opportunities, including hidden sources of value
- Assessing the intellectual property of technology coupled with the barriers 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 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?
- Is the process producing more surprises than benefits?
- Do you have the resources to manage the entire effort?
Moving beyond complex transition issues requires a well-designed plan and the ability to execute—fast and flawlessly. We do this every day and can help you minimize the risks, accelerate the transition timeline, and move quickly to capture synergy value expected from the transaction.
- Prepare for closing—negotiating with vendors, developing employee retention plans, and defining a Transition Services Agreement with the seller
- 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