COVID has placed significant challenges on travel, meetings, and getting deals done the traditional way. However, these are also some of the best times for acquisitions. Q3 2020 global deal value is down 18%, and volume is down 10%, yet change is in the air as US deals of $5-10B are up 23% compared to Q3 2019 and at a two-year high. M&A activity is poised for growth, but business models are changing related to retail, healthcare, and business services. One thing is clear; dramatic change reveals new opportunities. As new due diligence kicks off, are you ready for a new approach?
Virtual data rooms have been around for a long time and are great for facilitating the review of financial data, documentation, contracts, and information. But how do you validate the technological lifeline of a company’s information technology, infrastructure, assets, security, compliance, intellectual property, and more?
SAGIN has led the way in virtual IT due diligence that goes beyond reviewing documentation and Zoom meeting interviews. A virtual IT assessment (“VITA”) is a proprietary methodology allowing acquiring firms to gain valuable insight into the integrity of a company’s systems environment. VITA combines IT due diligence with vulnerability testing and asset tracking to provide a complete picture of asset’s age, necessary maintenance, security threats, vulnerabilities, infrastructure management, reliability, and resiliency. All while providing a roadmap to support future growth or the merger of another company.
It doesn’t matter whether the target company operates on-premise data centers, uses co-locations, or has cloud-based solutions. The VITA methodology deploys systemic tools to perform the analysis in a matter of days. Depending on the size of the operation, the acquiring firm can obtain a complete report in a week. Traditional IT due diligence merely provides the status of the technology landscape. VITA provides an in-depth analysis in less time and at a lower cost. The VITA methodology includes but not limited to:
- Information/documentation requests & review (traditional due diligence)
- Contract release forms
- System agent deployment
- Network & Assets scans and assessments
- Security & vulnerability testing
- Virtual technology interviews and equipment/facility tours
- IT cost assessment and benchmarking
- Risk assessment and mitigation plan
- Resource management plan and team skills assessment
- IT Roadmap based on the future strategy of the acquisition
The tools available today within the VITA methodology not only provide a status of the IT environment but an actual validation and testing of its operation, people supporting it, and its risk and threat prevention ability.
SAGIN is a professional services firm that provides both management consulting for M&A and operates a 24/7 global support IT Managed Services practice. We support Private Equity firms and companies with:
- IT Managed Services including Help Desk, Infrastructure, IT Security Management, Voice/Video solutions, server, and cloud-based administration.
- IT Due Diligence using the VITA methodology
- Interim management for Operations, Technology, and Finance
- Private Equity Outsourcing of IT Operations
- Executive recruiting, coaching, and development