Technology Due Diligence That Contributes To Assessing Post-merger Valuation

PR Log (Press Release) – Nov 06, 2008 – Building on its technology Due Diligence practice, Beacon Integration L.L.C. announced today that it would begin offering clients access to its new Forward-Looking Due Diligence® consultation service.  The innovative Information Technology (IT) assessment service focuses on highlighting IT based post-merger issues and opportunities for mergers or acquisitions that result in business consolidations.

At the heart of this service is drafting a target state technology profile for the combined business by contrasting both companies’ existing technology use. Aligning the profile with business priorities, technology that provides a competitive advantage is factored in for preservation.  The effort and complexity required to achieve the target environment is then evaluated.  This addresses a fundamental flaw with traditional technology due diligence assessment approaches that don’t look at how well or how quickly IT environments will mesh.

By emphasizing a realistic interpretation of technology integration, and assessing the end state post-merger IT organization and environment during the pre-merger due diligence, dealmakers are better poised to accurately assess post-merger valuation, negotiate sales agreement terms accordingly, and avoid post-merger issues.

For investors engaged in buyout sponsorship, private equity groups, or turnaround specialist whose strategy calls for maintaining an independent entity, Beacon Integration’s traditional IT due diligence provides a deeper look into a target’s existing IT aptitude, health, and risk factors with an emphasis on identifying improvement opportunities.