5 Questions That Save $100k’s On Mergers & Acquisitions.
John Hetherington
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I wanted to share with you a discovery I made from working on acquisitions and business integrations. It's not revolutionary, but it did influence my redirection towards due diligence on technology as a success factor of streamlining the integration process..
The discovery: Technology Due Diligence.
Acquisitions and mergers inherit a lot of new technology and data. And research by Harvard Business Review shows that 74% of merged companies fail to deliver expected results. This means delays and cost overruns and frustrated teams held back by broken processes and slow systems.
Why Do We See Acquisition Cost Overruns?
Traditional due diligence has three categories: legal, financial and commercial. But in this post-Covid, AI, Data driven world, most businesses are going through Digital Transformation and the due diligence process is missing a key component. Technology Due Diligence.
To help my clients, I researched Technology Due Diligence and created a Technology Merger Integration Framework.
Successful Acquisition Starts With 5 Key Questions
Which apps are transitioning?
Who is the point contact for each app?
What’s the list of your active IT service contracts?
What’s the process for implementing, upgrading and supporting apps?
What was the result of your last Penetration Test?
Your mind might be racing at this point, and it should be. The potential for cost overruns and delays is high. Asking these questions saved $100k’s for one of my clients.
Get ahead of your next acquisition.
Ask the Technology Due Diligence questions.
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