Summary: IT operations and governance are often overlooked or treated as a black box during the acquisition diligence process.  In many cases, the Target company's ERP platform is outdated, financial and customer data protections are lacking, and IT governance is either completely outsourced or handled only as needed. Recognizing what transaction metrics are important during the LOI or pre-close stage is vital to developing a success post-close integration program.

Outcome: Attendees will learn:

• Risks that will impact the transaction and build a mitigation strategy
• IT cost implications before the transaction closes
• IT and Cybersecurity governance metrics that matter the most

Takeaways:

• Define the scope and timing of IT operations diligence once the LOI period has begun
• Determine the impact of IT operations and governance on EBITDA
• Identify the investments and one-time costs necessary after the transaction closes
• Recognize when diligence is necessary and what initiatives are executed after acquisition

Key Discussion Points:

• Understanding the focus areas of IT governance, cybersecurity, and backoffice operations.
• Determining key staffing and cost metrics (benchmarks) that are useful during diligence.
• Identifying areas where subject matter specialists are used (and needed) for diligence and the metrics uncovered
• Defining the outcomes of diligence and what is communicated to other third parties, e.g. lenders, insurance carriers, investors
• Recognizing when you need to perform operations/cyber diligence and what you need for a successful transaction