Mergers & Acquisitions IT Analysis

Mergers and acquisitions (M&A), as well as divestitures, create several challenges to organizations and their stakeholders. Because of the increasing size of today’s transactions, it is imperative that an organization have the most accurate picture as possible of its current and future capital and operating expenditures. At the top of the list is the growing importance of the information technology (IT) infrastructure.

IT is becoming one of the most critical elements to supporting business objectives, and yet many times, it is overlooked in M&A activity, causing much undue risk for its stakeholders. What has changed? The cost of IT has become a greater percent of the operating expenditure. The role of IT has changed as well. Investors today need to know, up front, how it will support the new business. IT has become more than just an asset that is inventoried by accountants. It has become more part of the strategic thinking and planning.

As a leading provider of IT Advisory Services, PSC is often asked to lend their advice and expertise on such topics as scalability, appropriateness, and longer term value of IT. In the course of our engagements, our experience has shown us that when it comes to planning a merger or acquisition, organizations want to know if the incumbent information systems will support the anticipated growth, and will they do it economically? They also want to know if they will have the right mix of scalable and compatible components needed to support present and future needs of the business, and if not, the level of funding that will be required to make that happen. Rigorous IT due diligence can “save” millions of dollars in unnecessary expense.

Our Advisory Services practitioners have the following solutions that can answer these questions and more.

Acquisitions Services/IT Due Diligence

Created to assist Private Equity Groups, Lenders, and Corporations making strategic acquisitions. This service is the starting point for most M&A’s.

Merger and Add-On Integration Solutions
Designed to establish a clear IT Strategy and Integration plan when merging two or more organizations, this form of IT Governance can help define the future state that will make an M&A a success.

Divesture Services

Established to help clients understand the IT impact of carving out, or spinning off, one or more of its business units. This form of Divesture Services is designed to insure that the new business will be capable of functioning as a stand–alone unit.