Technology Due Diligence
Technology risks have become a significant factor in determining the success or failure of mergers and acquisitions. Whether an organization plans to operate its acquisition as a stand-alone entity or integrate it into an existing platform, consideration related to its current technology costs, service agreements and security posture, and regulatory and compliance obligations all play a role in determining the long-term success of the transaction. Existing technical risks in a target can affect the deal conditions or price. Performing a technology due diligence assessment as part of any acquisition or new partnership can uncover risks, ensure a complete picture of the assets and liabilities an organization acquires, and potentially avoid costly investments to address the inherent technology risks of the target company as well as IT needs that have been deferred or neglected.
A survey of 2,700 information technology professionals and business executives from around the world shows that 65% of surveyed IT professionals and business executives said unforeseen cybersecurity issues had caused their companies to have buyer’s remorse in the wake of an acquisition.https://www.forescout.com/solutions/asset-management/merger-and-acquisition-cybersecurity-report/
Our team will assess the technology and security capabilities for an acquisition to identify “red flags” that could impact the overall viability of the transaction or require more in-depth analysis to determine the actual risks to the organization. Our report will provide an overview of the IT environment, identify areas of risk, and offer recommendations.
Our team will perform an in-depth analysis of the target company’s IT capabilities. This includes reviewing IT assets (hardware and software), licensing agreements, IT service provider agreements, in-place security solutions, and compliance and privacy obligations. Our report is broken into two sections: an executive summary of our observations and recommendations and a detailed analysis of each of the components of the assessment.