Whether you're planning to buy or sell an entity, it's important to have an objective view of the current state of your information technology (IT). You need to understand key risks and associated impacts to the deal, along with any cost considerations that may impact the overall transaction value. Having an advisor to support the diligence stage not only accelerates the process but also prepares your IT leadership for the future.

Stout advisors have a proven record of providing IT diligence services for both buy-side and sell-side transactions. We identify potential risks, impacts, and remediation, as well as future considerations to maximize deal value. We also support clients' IT management teams throughout the process and with post deal-close IT services.

We not only work in conjunction with Stout's Transaction Advisory team but also provide stand-alone IT diligence services to our clients. Our team has experience across multiple industries, including healthcare, technology, manufacturing, aviation, financial technology, and telecommunication.

Our IT Due Diligence Services

We assist buyers and sellers in understanding the value drivers and risks associated with the proposed transaction. Our focus is on identifying issues that may affect the current state of IT, as well as required investments that ultimately impact the valuation and purchase agreement. As part of an IT due diligence assessment, our team focuses on five key areas within the target’s IT environment:

IT Organizations

We assess the overall IT staffing, leadership, strategy, and operating model, as well as understand the strengths and limitations of the IT organization.

Applications

We understand the IT back-office application landscape, identify potential capability limitations in the application environment, and document potential risks and remediation associated with the applications.

Network and Infrastructure

We assess the current state of the target’s network and infrastructure, identify risks associated with older or unsupported infrastructure, and provide future state considerations regarding integration or separation.

Security

We develop a high-level understanding of the security and compliance environment, identify security risks and potential implications, and recommend mitigation strategies to remediate key risks to the IT environment.

Spend

We analyze the annual IT capital and operational spend for current and prior years, identify reasons for major variances, and estimate one-time and incremental costs associated with risk resolution and/or IT environment integration or separation.

Who We Serve

• Private equity funds
• Corporate development directors
• Chief information officers