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IT M&A

IT Financial Due Diligence

IT financial assistance in the context of an M&A process is about identifying potentials in the IT portfolio, and then helping to minimise risks and realise potentials or synergy effects. In the context of a company acquisition, a merger or a divestment, external assistance from a partner specialising in IT finance can save an organisation a lot of money and internal time.

Reduce risks and maximise synergies when buying and divesting

There are three types of M&A situations, where it makes sense to engage external assistance for IT financial analysis: during the due diligence phase of purchasing, immediately after the purchase and, just as importantly, as an integral part of the divestment process.

The due diligence phase of a purchase involves a short period of time to identify the commercial potentials/synergy and risks of taking over the IT landscape of the new company. The available database is often restricted, and the process has to take place in tandem with a myriad of other non-IT-related analyses. In this context, expert assistance quickly and efficiently helps you gain a necessary overview, and to value both risks and potentials in financial terms.

Immediately after a purchase or merger, the task is different. The newly acquired IT portfolio has to be integrated – not just technically, but also financially. In this context, the activities involve realising the financial potential of the IT portfolio or reducing negative financial impact. On this occasion, external assistance will help you renegotiate agreements and optimise the portfolio.

When divesting all or parts of a company, you should engage IT financial assistance at an early stage. It supports the process of optimising that part of the IT landscape that is included in the sale. If it is a carve out – in which, for example, parts of software licence portfolios are to be carved out as part of the divestment – external assistance is even more vital. It can provide an overview of the often significant IT financial consequences for the remaining part of the company.

Our assistance

As IT finance specialists, Zangenberg Analytics can support you in M&A scenarios, be they acquisitions, mergers or divestments.

The Zangenberg Analytics process is based on an IT financial analysis to identify risks and potentials. The work kicks off with a baseline data collection and subsequent analysis of existing software, infrastructure, development and maintenance activity. The result is a series of packages with action points and risk/potential information for each of the relevant areas. If you require subsequent assistance in realising the potential, we can also help you renegotiate any agreements that were affected and draw up a roadmap for the future environment.

Results

  • Mapping of risks, synergies and potentials
  • Focused action points and recommendations for each relevant area of the portfolio
  • Assistance in realising synergy/potential or minimising downsides on the basis of negotiation support.
  • Optimisation of the IT portfolio in the case of a divestment.

Would you like to know more?

Frederik Bastkær Christensen

Partner & Managing Director

+45 23 60 34 05

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Henrik Zangenberg

Partner & CEO

+45 30 57 50 07

LinkedIn