Private Equity

"An ounce of prevention is worth a pound of cure"

“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


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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.


What's Going on Under the Hood?

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.


We Ask the Right Questions:

What is really being purchased?

What's the state of the infrastructure? Will it need additional investment, or is it robust and functional for the foreseeable future?


Does the technology effectively enable business?

Does the IT fuel the business or constrain it? 


Is it scalable?

Does it have room to grow? Can it be integrated into existing or future environments? 


Who’s on the team?

Is it overstaffed or overtaxed? How is staff compensated in comparison to the market? How dependent is the team on one developer? Who has the critical undocumented knowledge? What is the average response or callback time for problem tickets? What certifications does the team hold? 


What’s the IT maintenance and upgrade history?

How often have products been upgraded? What is the process for critical bug fixes and major releases with new features?


How secure is the network?

How robust is network security, from anti-virus protection to firewalls, from proper password protocols to off-site backup and recovery capabilities in the event of disaster?


Are there legal issues?

Are there potential technology issues, including software license agreements? Does the company fully own its source code? 


How We Can Help

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.”

Click here to take the free IT risk assessment.

Learn More

If you would like additional information regarding how Paranet can unite your business and IT operating environments, click here to schedule a consultation or call us at 855-PARANET.