Information systems are critical to the day-to-day operations of any business. Our IT due diligence service helps organizations identify the IT and business-continuity risks and impacts presented by mergers and acquisitions (M&A), carve-outs, and equity investments by investment funds.
IT due diligence: maintaining IT continuity
As part of our IT due diligence service, we help buyers and investors identify IT risks arising from the operation and estimate the cost of maintaining business continuity:
Carve-outs: Negotiating transitional services agreements (TSAs) between the seller and the buyer, and assessing IT projects in order to maintain information system continuity.
Equity investments: Assessing potential threats to the business plan (information system obsolescence or misalignment with the agreed strategy) and estimating the cost of required IT investments.
Mergers and acquisitions (M&A): Estimating the work required to integrate the new entity into the buying organization’s IT environment post acquisition, and drawing up an associated action plan.
IT due diligence by Hardis Group
- Initial review phase: Flash audit covering key information system risks, based on the information and evidence provided.
- Due diligence phase: Assessment of the risks and challenges presented by rebuilding, transferring, or integrating the information system, plus developing and costing an associated action plan.
- Transitional phase: Negotiation of transitional services agreements (TSAs) and management of the transition project.
- For buyers: Deployment of the target information system (transfer, deployment of new IT architectures, implementation of new applications, integration of applications specific to the acquired entity into the buyer’s information system, etc.), change management, etc.
- For sellers: Decommissioning of the sold entity’s applications and IT environments, skills transfer, etc.
- Post-sale phase: Support with implementing the agreed action and modernization plan.