The Importance of IT Due Diligence during a Merger or Acquisition

This chapter discusses the importance of Information Technology due diligence during a merger or acquisition. Due diligence is a major prerequisite of any merger and acquisition deal and helps lay the foundation for post‐merger integration success. Through a thorough process used to conduct due diligence, potential synergies and ease of integration can be determined, arming the post‐merger integration teams with adequate knowledge to immediately begin planning once the deal is officially announced. Role of the Chief Information Officer is involved in merger integration efforts that are forced to work reactively, presented with integration timeframes and synergy targets that were established without their involvement. The due diligence team should then assess the data‐room information and quickly determine what is relevant. Accelerating Merger Integration Planning through Due Diligence Accelerating merger integration planning is made more difficult because due diligence activities are associated with highly compressed time frames and limited information that may or may not be accurate.