“Paranet is a key partner because they are so knowledgeable. They can work with the seller’s IT staff to uncover the potential risks in their environment. They really represent the buyer’s IT needs effectively, so we know exactly what needs to be done and how that affects the total cost of the transaction.”
-James Lines, Senior Operating Partner, Thoma Bravo
Buying a business is a lot like buying a used car. Everything may look good on the surface, but it’s difficult to know the automobile’s true condition without paying an objective expert to pop the hood, hook up a diagnostic computer, and take a good, hard look.
Now that so many businesses depend on technology for their very existence and profitability, IT Due Diligence needs to be a central part of the M&A process, with proven experts determining definitive answers in key areas.
Our expert IT Due Diligence takes an objective and expert approach. This includes looking at the machines in the building, IT expertise on staff, software, disaster recovery plans, development processes, legal entanglements, and so on.
Our expert IT Due Diligence analysis will not necessarily kill an acquisition if it finds IT shortcomings, but the output allows better decisions by rating the target company from a technological standpoint. Often, the analysis will generate a to-do list, not unlike a home inspection does with the purchase of a new house, or it generates a suggested adjustment to the purchase price.
An expert analysis provides, in essence, the best estimate of the additional investment needed to make the company competitive and scalable. IT due diligence exemplifies the old adage that “an ounce of prevention is worth a pound of cure.”