Technology Due Diligence for M&A

The tide has turned, and technology now plays a pivotal role in the successful outcome of a merger, acquisition or divesture. The success and value of a transaction is often jeopardised by poor technology execution. The advantages of technology due diligence are not isolated to technology companies; it’s relevant to any company that relies on technology to be effective.

Datacom’s technology due diligence service leverages Datacom’s industry leading application management services, drawing on the country’s largest pool of software specialists. We ensure the right knowledge and the right skill set is applied specifically to each individual transaction, and produce appropriate and relevant reporting and recommendations for your business.

Sell Side Services:

For Sellers, including an independent and objective technology audit (or “What’s in the Box” report) in your Information Memorandum (or buyers’ pack) shows credibility and gives buyers the confidence to move forward and invest. whilst preserving the value of your business through the transaction.

Key Benefits are:

• An independent and objective report to include in the IM/buyers' pack
• Builds credibility and confidence among potential buyers
• Top line view of full IT environment
• Free of recommendations
• Covers all areas of your IT environment

Buy Side Services:

For buyers, independent and objective technology due diligence will mitigate risk and uncover new opportunities. Leveraging off the vendor’s “What’s in the Box” report, potential buyers can request more fulsome due diligence on any of the areas that are of interest. 

Key Benefits are:

• Buyers leverage the vendors existing report, minimising the costs of an initial discovery phase. However, it isn’t mandatory for interested buyers to leverage a vendor report to undertake technology due diligence. Datacom’s services can be commissioned outside a vendor report, with vendor consent, in much the same way accounting and legal due diligence is undertaken
• Buyers can request due diligence only in areas that are of particular interest
• Up to 140 individual points can be reported on
• Reporting is in context with the buyer’s strategic objectives for the transaction
• Includes recommendations and non-reliance limitations