Considerations when doing IT Due Diligence in Company Acquisitions
IT due diligence is primarily undertaken to understand the target business IT systems with a view to establishing the resources and costs involved in integrating them into the acquirer’s IT systems, the possibility of the target business having a more suitable IT infrastructure already in place should not be ignored. The IT due diligence exercise must be exhaustive and particular emphasis placed on reviewing and understanding contracts with third parties and the possibilities of rationalising software licences. These are areas where value can often be added in the form of cost savings and improved processes.
About The Advisor
Alan Hansell is an emeritus IBRS advisor who focused on IT and business management. Alan specialised in critiquing and commenting on IT and business management trends, ways to justify and maximise the benefits from IT-related investment, IS management development and the role of the CIO. Alan has extensive experience in IT management, consulting and advising senior managers in matters related to IT investment. He was a Director in Gartner's Executive program and adviser to over 50 CIOs and business managers and before joining Gartner a consultant with DMR Group. He also worked as an IS professional, manager and industry consultant for IBM for nearly 30 years. Alan is a CPA and Associate of Governance Institute of Australia.