Assess Acquisition Target Information Technology

Client

 A large private equity investment firm that makes equity investments in operating businesses, and forms new companies to pursue growth-through-acquisition strategies in selected industries.

Project Goals

The company required a quick assessment of a target acquisition, a growing sports and clothing retailer, in a very short time. Specifically the equity firm wanted to know:

• The overall health of the information technology function within the target company
• Any potential short term difficulties that required major IT expenditures
• The ability of the target company’s information technology to support corporate expansion

Deliverables

A fully documented assessment of IT infrastructure, support, and applications at the target company including any needed improvements. All identified improvements included estimated costs and timelines to achieve.

Results

• An ongoing project at the target company was canceled due to lack of business benefits
• Estimated costs for needed IT improvements were used during negotiations to reduce the amount paid by the investment firm