IT Due Diligence – M&A Process



Is your company invovled in a merger?  You may want to check out Mike Sisco’s book, IT Due Diligence:  The Merger and Acquisition Discovery Process.  You can download the first 2 chapters here and get a solid overview of the due diligence objective and processes.

Read on for the complete table of contents:

I. Buying a New Company – Exciting Times

II. Due Diligence
A. Due Diligence Objective
B. Due Diligence Process

III. A Proven IT Due Diligence and Assimilation Process

Step 1 – Initiate
Step 2 – Prepare
Step 3 – Discover
Step 4 – Issues
Step 5 – Project Initiatives
Step 6 – IT Due Diligence Report
Step 7 – Transition Plan

IV. IT Due Diligence Focus

V. IT Due Diligence Request List

VI. What Are the Key Risks?
A. Technology stability
B. Technology ownership
C. Software license compliance
D. Staff support
E. Vendor support
F. Major expense needs
G. Security

VII. On-site IT Review
A. IT Business Assessment Outline
B. Sample Client Interview Questionnaires

VIII. IT Due Diligence Data Collection Templates
A. Business Applications
B. Infrastructure – Servers
C. Infrastructure – LANs
D. Infrastructure – WAN
E. IT Staff
F. IT Project Initiatives
G. Automation Capabilities
H. Software License Agreements & Contracts
I. Software License Agreements Granted to Other Companies
J. Maintenance and Support Agreements (Hardware & Software)
K. Other Contracts and Leases
L. Capital Budget Items
M. Outside Consulting / Contract Work (Next 12 Months)
N. IT Operating Budget (Next 12 Months)
O. Transition Costs (Next 12 Months)

IX. IT Due Diligence Report
A. Executive Overview
B. IT Support Overview
C. Risks
D. IT Budget – Next 12 Months
E. Capital Expenditure Needs – Next 12 Months
F. Key IT Project Initiatives
G. Leverage opportunities
H. Transition Plan

X. Summary

A. IT Due Diligence Request List
B. Information Technology Business Assessment Outline
C. IT Assessment – Senior Management Questionnaire
D. IT Assessment – Department Head Questionnaire
E. IT Assessment – External Client Questionnaire
F. IT Due Diligence Data Collection Templates
F-1 Business Applications
F-2 Infrastructure – Servers
F-3 Infrastructure – LAN’s
F-4 Infrastructure – WAN
F-5 IT Staff
F-6 IT Project Initiatives
F-7 Automation Capabilities
F-8 Software License Agreements & Contracts
F-9 Software License Agreements Granted to Other Companies
F-10 Maintenance and Support Agreements
F-11 Other Contracts and Leases
F-12 IT Capital Budget Needs
F-13 Outside Consulting and Contract Work Needs
F-14 IT Operating Budget
G. IT Transition Costs
H. Sample Due Diligence Report Template
I. IT Assessment Notes