TECHNOLOGY DUE DILIGENCE
In today’s modern business world nearly all companies depend on their IT applications or technology infrastructure to perform successfully. The systems are intrinsically woven into the operating DNA of the business and as such that they can make a significant contribution to business value.
These systems come in many different forms such as revenue-generating or administrative, customer-facing or internal, internally or externally hosted. The one thing that all of these systems will share is that if they (or the people that support them or their underpinning networks) are unavailable or sub-optimal, the performance and therefore the value of the business will be negatively impacted. It is therefore imperative that an investor fully understands the technology and IT infrastructure of the intended target business prior to an investment being made.
A due diligence engagement and report conducted by Confido allows the investor, before it is committed to an investment, to fully understand and appreciate the target's IT or technology operations. It also allows the investor to test the alignment of the business plan from a technology/IT standpoint.
Confido's consultants bring many years of business, technology and M&A experience and can conduct due diligence assessments for both buy-side or sell-side transactions. Having held senior management positions in technology service providers and managed technology departments or provided management consultancy across a range of different business verticals, we can provide a unique insight to technology from both the supplier and consumer perspective. Our assessments are always conducted with a high degree of pragmatism based on real life experience rather than text book ideals or current industry hype.
A technology assessment by Confido will provide the investor with the following outcomes:-
The major strengths and weaknesses of the IT and Technology platform
Suitability of the target's technology to support the investors strategy
Any current or projected risks associated with information security, business continuity and resilience
Assessment of the technology budget and opinion as to whether it is suitable to support the strategy and/or whether there are opportunities to realise efficiencies
A plan to address any of the findings that should be prioritised post completion
Crucially, no assessment is the same and therefore each assessment is tailored to the investor, the target business type and the strategy.
Additionally, in some cases, a full technology assessment for the buy-side can come late in the process following the financial, legal, taxation and commercial diligence workstreams. To ensure that the investor is supported at the outset of a potential investment, Confido provides an advisory service prior to conducting due diligence to assist the investor in understanding the business and the markets it operates in (particularly if technology focused) prior to committing to a detailed assessment.
Confido has advised on a number of recent transactions including, Chartco, Intelligent Thinking Group (ITG), TOM Vehicle Rental and Transflex Vehicle Rental.