Due diligence to integration planning supports PE acquisition success

Client background

The company provides crisis management and response services to governments and corporations across North America. It is backed by a private equity (PE) firm focused on strategic growth through acquisition. As part of its expansion strategy, the PE firm identified a complementary business that would enhance the company's service offering and strengthen its operational capabilities.

The business challenge

As part of a strategic acquisition, the company needed to evaluate the IT landscape of a target company to ensure compatibility and identify potential risks. The challenge extended beyond standard due diligence as there was also a need to define a clear and actionable integration strategy between the two portfolio companies. This included developing a Transaction Services Agreement (TSA) to govern the interim operating model and ensure business continuity post-close.  

The company also required guidance on how to align systems, processes and teams across both organizations. With limited internal resources and a tight timeline, the company sought a collaborator who could not only assess the current state but also provide strategic insights to support their integration and technology transformation initiatives. 

Strategy and solution

Baker Tilly provided the following consulting services to support the company’s strategic acquisition and integration: 

• IT due diligence and risk assessment: Conducted a comprehensive review of the target’s IT infrastructure, applications and cybersecurity to identify risks and integration opportunities 
• TSA definition and project management: Drafted and project managed the execution of the TSA that defined transitional IT services, responsibilities and timelines to ensure post-close continuity. This involved aligning stakeholders and overseeing outlined integration activities. 
• Enterprise software evaluation and selection: Led the selection of enterprise recruiting and financial systems to enable scalable operations across the parent company 
• Change management support: Developed a client-executable change management plan to support successful adoption 

As a result, the company received tailored solutions, aligned with their goals, that supported both their immediate transaction needs and their long-term growth.