IT Due Diligence Reviews
It is of paramount importance that when a private equity or venture capital firm is acquiring or investing in a company, that an IT due diligence review is performed – especially if the company is a technological company or if IT is considered as a strategic enabler for the identified company.
Unfortunately, many investors are focused on only financial and legal due diligence issues. Even in the purchase of a technological company, IT due diligence is sometimes an afterthought – the same goes for when service provider / vendor due diligence reviews are performed.
BDO believes in performing IT due diligence reviews, where necessary, regardless whether we are dealing with an acquisition or vendor review. Aspects, related to the management of IT, that could be covered during a review are:
- IT staff management.
- Software products.
- Software development process.
- Documentation to enforce proper governance.
- Software utilized to enable business objectives.
- Hardware, network and infrastructure.
- Capacity management.
- Existing mission-critical systems and issues that could cause them to become detrimental to the success of the business or impede the growth of the business.
- Backup, recovery and disaster recovery planning.
- In-house intellectual property, relating software developed.
- Customer base.
- IT security and compliance with laws.
- Agreements (e.g. SLAs) and legal documentation.