Information Technology (IT) is fast becoming a key lever to deliver operational benefits such as reduced operational costs, accelerate time to market or ease of scaling up business. Inadequate pre-deal due diligence is one of the key reasons of M&A transactions not delivering the expected value. Further, due to the financial focus of due diligence in M&A transactions, buyers more often than not underestimate the role and impact of IT on the transactions, business growth and profitability due to the escalating costs and timelines associated with integration or separation.
Buyers are increasingly requesting professional advisors to undertake IT Due Diligence to address the impact on a transaction and its valuation. A global study by EY reveals that:
Partner and Head – Post Merger Integration Practice
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When does IT DD matter the most?
Typically, we align the focus of an IT DD with the client’s deal objectives to deliver maximum value.
How do we do it?
As part of our diligence, we review the critical components of the target’s IT landscape, such as:
Having advised over 100+ transactions, we understand that IT plays a vital role in realizing the expected benefits but also has the biggest lead time to deliver results.
Read how EY is helping clients realize these benefits