IT due diligence
Last week, we explored the risks of assuming your target company’s compliance on licensing. If it isn’t, you’ll have to factor in the costs for any unlicensed or under-licensed software. The licenses also have to be assignable when the transaction closes. And don’t forget any civil or criminal penalties, should the vendors wish to pursue them.[Read more…] about IT Due Diligence: Make Sure Your New Acquisition Can Scale
Divesting a business unit presents the seller with a number of challenges, ranging from financial to personnel to technology systems. But for the purchaser, the challenges of standing up the carve-out as an independent company can be even greater.[Read more…] about Private Equity Carve-Outs: Keeping IT from Slowing Yours Down
We recently sat down for a chat with long-time client, Jim Lines, Senior Operating Partner at Thoma Bravo, one of the most experienced and successful private equity firms in the United States. For the last 15 years, Jim has turned to Paranet to help his company with due diligence. Specifically, Paranet assesses the technological health of many of Thoma Bravo’s merger and acquisition candidates and, in many cases, performs the necessary work to get a company where it needs to be from an IT perspective.[Read more…] about Due Diligence: Is Your Acquisition Target Courting Disaster?
As we’ve often said, when it comes to acquisitions, IT due diligence often gets glossed over or even forgotten amidst all the financial assessments. But, as we’ve also shown, a lack of thorough IT due diligence can be quite costly, even for “low-tech” acquisitions.
Today we’ll dig into just one aspect of due diligence where not knowing can leave you with costly blind spots: software licensing.[Read more…] about IT Due Diligence and Software Licensing: It Pays to Get the Full Picture
Why and how to partner with the experts
We started this series by explaining why thorough IT due diligence is crucial to any merger or acquisition – and why it often fails.
Then last week, we focused on three key areas for that due diligence:
- What assets you are buying – and in what condition
- How (or if) they will drive your business goals forward
- Whether they can scale and integrate with the rest of your business
Finding someone that can actually do thorough due diligence on information assets isn’t always simple. Certainly, we’ve said that typical M&A accounting firms don’t often staff such experts. And if you don’t have a sizable in-house IT staff, you won’t have the people needed to do it.
So how do you select the right partner?[Read more…] about M&A: How to Ensure Yours Is Technologically Sound – Part 3