IT Due Diligence

Information Technology (IT) Due Diligence

IT due diligence is no longer a niche topic, but an integral part of successful transactions - regardless of industry or business model. Digital technologies, including artificial intelligence methods, are now prevalent in all areas of business. Production, sales, customer service, and administration would be unthinkable without powerful and resilient IT systems. Consequently, IT is the key factor in determining the competitiveness and future viability of every company.

IT due diligence provides the necessary transparency to identify IT-related financial risks, such as urgent investment requirements, at an early stage. At the same time, potential cost reductions may be identified that could have a positive impact on the value of the target company. With IT due diligence, successful deal teams can make better, fact-based decisions, minimise risks and realistically assess and increase the value of the target company in a more targeted manner.

Why is IT due diligence essential for deal teams?

Risk identification

Early identification of IT-related risks such as lack of IT strategy, lack of employee expertise or concentration of knowledge in a few key individuals, outdated systems, inadequate IT security or insufficient IT emergency measures

Value creation opportunities

Identification of digitalisation opportunities, efficiency gains and investment requirements that may promote the future growth and competitiveness of the target company

Operational reliability

Ensuring smooth IT operations from day one after the transaction (“Day 1”)

Post-merger integration costs

Advice for post-merger integration through early planning and targeted measures

Negotiation leverage

Data-driven arguments for price and contract negotiations

What does the IT due diligence cover?

Our IT due diligence is tailored to the specific circumstances of a transaction and the needs of the deal teams, focusing on all material IT-related risks. Typical areas of focus include:

  • Strategic alignment of IT and IT costs
  • IT organisation and IT functions
  • IT architecture overview
  • Process organisation, processes
  • Resilience, security, and data protection

two businessmen at a laptop and looking at papers

BDO is your partner for IT due diligence

  • We are one of the world’s leading transaction advisors: Thanks to our in-depth expertise and global presence, we consistently rank among the top transaction advisors in leading rankings
  • We act in a risk- and opportunity-oriented manner: IT-related risks are identified and value creation potential is highlighted at the same time
  • We are pragmatic and transaction-oriented: Our IT due diligence is tailored to the specific situation of the company and the needs of the deal team
  • We have a proven track record: Strategic investors, private equity firms, and financial institutions trust us - in Germany alone, we are involved in around 100 transactions per year
  • We are one of the leading one-stop shops on the market, offering all the necessary due diligence services.

Further due diligence topics:

Our team of IT due diligence experts

Dr. Jacob Justus Leidner

Dr. Jacob Justus Leidner

CFA, Senior Manager, Advisory
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Robert Dieckmann

Robert Dieckmann

Senior Manager, Management Advisory
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