IT Due Diligence (IT DD)
Beside the common due diligence disciplines such as financial due diligence or commercial due diligence, the IT due diligence (also known as tech due diligence) is becoming increasingly important. This is particularly due to the continuously growing importance of IT for business processes within corporations. Additionally, mounting digitalisation is changing business models in certain industries and the way business is done all over the world. Challenges for corporates are also increasing due to the constantly changing legal environment (especially requirements concerning data protection).
An IT due diligence is the systematic identification of information technology related opportunities and risks based on a thorough analysis of the existing IT systems, IT structures, IT resources and IT processes. The focus is on the
sustainability of the chosen strategy. Especially for financial investors (“private equity”) aspects relevant for purchase price adjustments are elaborated.
Within the scope of IT due diligence projects, we support our clients especially in the following areas:
– Review of the scalability of the business model based on IT-related aspects
– Assessment of the technology and product portfolio (e.g. hardware solutions, software)
– Checking the compatibility of the different information technologies
– Evaluation of the product roadmap (including release management, test coverage)
– Identification of potential risk areas (e.g. 3rd party licenses, copyleft effects)
– Support with open source risk analysis
– Analysis of the IT architecture (incl. infrastructure, software, technologies etc.), IT organization and processes
– Screening of relevant technology trends (e.g. IT security, cloud, AI, Big Data, Blockchain) and their impact on the business model of the target companies
– Evaluation of nearshoring and offshoring strategies
– Assessment of the existing data protection organisation
– Development of a scorecard and risk matrix with subsequent recommendations for action
– Assessment of business continuity
As one of only a few consultancies we offer commercial due diligence and IT due diligence aligned and combined. Our clients thus benefit from the resulting synergies in terms of time and cost savings as well as increased knowledge gain.
Commercial Advisory Unternehmensberatung provides honest advice and clear answers to critical questions. We are a trusted partner of small and medium-sized enterprises and private equity investors. Please contact us for further information.
Please contact: Markus Knarr
Commercial Advisory Unternehmensberatung GmbH
D- 80336 München
Phone: + 49 89 51514812