The better the question. The better the answer. The better the world works. У вас есть вопрос? У нас есть ответ. Решая сложные задачи бизнеса, мы улучшаем мир. У вас є запитання? У нас є відповідь. Вирішуючи складні завдання бізнесу, ми змінюємо світ на краще. Meilleure la question, meilleure la réponse. Pour un monde meilleur. 問題越好。答案越好。商業世界越美好。 问题越好。答案越好。商业世界越美好。

Technology: A revenue driver or another cost head?

IT due diligence can help uncover technology risks and assist in post-deal planning on the proposed transaction.

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:

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EY - Naveen Tiwari

Naveen Tiwari
Partner and Head – Post Merger Integration Practice
+ 91 22 61920550

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EY - Technology: A revenue driver or another cost head?
EY - Technology: A revenue driver or another cost head?

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.

Case studies

Read how EY is helping clients realize these benefits

Case study 1

We performed a buy-side IT due-diligence on a target NBFC being carved out of a large listed parent, with multiple lines of business in the financial services sector

Learn how

Case study 2

We performed a buy-side IT due-diligence (DD) on a leading Telecom company

Learn how