IT DUE DILIGENCE

Ensure better valuation, financial modeling, & risk mitigation

IT Due diligence

IT costs often account for a major chunk of a company’s operational expenses, which is why it’s so important to ensure that investments are geared toward efficiency and that there is suitable oversight.  IT due diligence is often considered a function reserved for merger and acquisition scenarios, but companies interested in managing their IT costs and risks can also engage in this practice periodically.

While IT due diligence could be handled internally by IT staff, or overseen by accounting professionals as part of mergers and acquisitions assessments, this complex process should really be undertaken by a third-party IT specialist with the knowledge, skill, and objectivity to ensure a full and accurate understanding of current IT operations and expenses, risk factors, and potential for growth.  As an independent consultant, SubjectData has no vested interest in the outcome of your IT due diligence service, and our expertise ensures a complete, accurate, and unbiased assessment.

OUR IT DUE DILIGENCE SERVICES

IT Due Diligence

Whether you’re involved in a merger or acquisition, or you simply want to streamline operations where IT is concerned, the qualified consultants at SubjectData are prepared to offer the following services:

  • Evaluate IT systems and processes
  • Assess costs
  • Identify risks
  • Forecast growth potential
  • Outline an integration strategy following a merger or acquisition
  • Define TSAs
  • and more

OUR APPROACH

At SubjectData, we take a four-pronged approach to IT due diligence that includes:

  • Understanding business goals
  • IT analysis
  • Negotiating transactions
  • Integration

This process is designed to pinpoint IT strengths and weaknesses in order to create the best possible platform for negotiations, helping your company to leverage advantages for the best possible sell prices.  In addition, our team of experts works to create an advantageous integration plan, taking into account details like licensing commitments, transition service agreements (TSAs), and more.

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Understanding business goals

  • Whether you’re merging or upgrading IT systems, we first need to understand what you hope to accomplish by the completion of the IT due diligence process. Some of your business goals may include:
  • Reducing IT expenses
  • Increasing scalability
  • Integrating IT assets
  • Adopting market-leading practices
  • Improving competitive prowess through IT technologies

  • Understanding your business goals allows us to focus our analysis in order to design actionable plans that drive the outcomes you expect.
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IT Analysis

  • Once we know your goals, we’ll begin the process of assessing your current IT status. This includes an audit of:
  • Systems and infrastructure
  • The makeup of your in-house IT department, including essential IT personnel
  • Processes governing IT operations
  • The value of IT assets versus actual and projected costs of IT operations
  • IT improvements that are planned or already underway
  • Potential risk factors related to security and disaster recovery strategies

  • This process is important for companies interested in curbing wasteful spending and planning for ongoing efficiencies, but it’s also a major component of mergers and acquisitions. With a clear understanding of IT assets and liabilities, your company can leverage the value and competitive benefits of streamlined IT to negotiate a favorable sale price and TSAs.
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Negotiating Transactions

  • Obtaining optimal outcomes during merger negotiations relies on your ability to leverage known advantages. Once we’ve completed our assessment of your infrastructure, systems, and operations, we’ll help you to create a negotiation plan that accounts for:
  • Valuable IT infrastructure
  • Potential synergies
  • Expenses (both known and unplanned)
  • TSAs
  • Future development
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Integration

  • Once negotiations are complete, our end-to-end services continue with IT integration. SubjectData helps to streamline the integration process by outlining the following:
  • Comprehensive IT organizational model
  • Infrastructure compatibility and redundancy
  • Revised IT project strategy
  • Essential business application upgrades
  • Essential IT personnel organization
  • Strategies to optimize IT expenses moving forward
  • Integration oversight
  • TSA responsibilities and ownership

  • In cases of mergers and acquisitions, the end goal of due diligence is not only to understand the overall state of IT, but to determine a pathway to integration. As part of our due diligence services, SubjectData can develop strategies to streamline and optimize the integration process, untangling a complex web of infrastructure, organization, and processes to create a clear and concise plan of action.

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