Technology Due Diligence
Technology Due Diligence
Baker Tilly’s cybersecurity and IT risk professionals help organizations assess their risks to gain more confidence in their transactions and uncover potentially significant risks that could affect the value of a sale or an acquisition.
Technology risks have become a significant factor in determining the success or failure of mergers and acquisitions.
Whether an organization plans to operate its acquisition as a stand-alone entity or integrate it into an existing platform, consideration related to its current technology costs, service agreements and security posture, and regulatory and compliance obligations all play a role in determining the long-term success of the transaction. Existing technical risks in a target can affect the deal conditions or price.
Performing a technology due diligence assessment as part of any acquisition or new partnership can uncover risks, ensure a complete picture of the assets and liabilities an organization acquires, and potentially avoid costly investments to address the inherent technology risks of the target company as well as IT needs that have been deferred or neglected.
A survey of 2,700 information technology professionals and business executives from around the world shows that 65% of surveyed IT professionals and business executives said unforeseen cybersecurity issues had caused their companies to have buyer’s remorse in the wake of an acquisition. [1]
