In our journal we publish articles on current topics from the industry, on our services as well as our success stories. We also give applicants authentic insights into our day-to-day work, for example through interviews and other interesting articles.
- IT M&A
- IT carve-out
- IT Due Diligence
- project management
- Software development
- Microsoft 365
- IT Audit
- Contract & License Management
- Process Mining
- process management
- Patient Administration
Munich, January 11, 2023: The IT service provider digatus it group AG continues its buy & build strategy and thus its growth course and complements existing IT M&A expertise by merging with M&A digitalization partner MAxpertise GmbH. With effect from 01.01.2023, MAxpertise is thus 100% part of the digatus group.
For Pfennigparade, the process of creating findings should be improved in terms of efficiency, speed and safety.
Due diligence translates as required or appropriate care, whereby in the M&A context it is a risk assessment. It is usually carried out prior to a company takeover or merger. The aim here is to make the risks of the purchase quantifiable for the investor or the buyer in M&A transactions. After all, the investor wants to know exactly how profitable and sustainable the targeted object is and whether the purchase price in question is justified. Subsequently, the identified risks have to be managed in the post-merger integration.
When corporate acquisitions are the subject of public discussion, they usually involve large, well-known companies and takeovers with sometimes far-reaching consequences. Expansion and influence on the market as well as the realization of synergy effects are then often the driving force behind the purchase. However, most company acquisitions do not attract much media attention and mainly concern medium-sized companies. Here, the company purchase is often more of a means to an end and is carried out, for example, in order to make succession arrangements or as an alternative to founding a new company. For buyers, the purchase of a company can be an alternative to founding a new company. The advantage can lie in already existing structures, well-rehearsed processes and a given employee and customer base. But the takeover of a company is also a complex process that can involve many risks and must be well planned and considered.
An IT carve-out in the context of M&A requires a lot of planning and preparation, with several aspects to consider. This article offers an introduction to the topic and some practical tips for a speedy implementation of a carve-out project.
In mergers and acquisitions of companies, the IT area plays an important but also costly role. Our experienced consultants help you to successfully master challenges even in complex merger & acquisition (M&A) projects. In doing so, we focus on comprehensive coverage of the entire transaction process from an IT perspective, from initial identification and evaluation of opportunities and risks, to support in contract and license management, to stable operation. As a partner, we assume the role of IT M&A advisor with cross-industry expertise in national and international M&A transactions.
Due to the deep anchoring of IT in all corporate divisions and business processes, a company acquisition without its precise consideration and adaptation is unthinkable nowadays. Accordingly, IT due diligence is becoming increasingly important alongside financial, legal and tax due diligence.
Due diligence is an important measure in mergers and acquisitions (M&A). In mergers and acquisitions, due diligence allows the buyer to confirm pertinent information about the seller, such as contracts, finances, and customers. By gathering this information, the buyer is better able to make an informed decision and close the deal with confidence.
The two industrial gas companies and former competitors, Linde AG, and Praxair Inc, merged in October 2018 to form the new global market leader under the Linde name. Linde is a leading industrial gases and engineering company with sales (pro forma) of $28 billion (EUR24 billion) in the year 2018, employing approximately 80,000 people worldwide and serving customers in more than 100 countries all around the world. Linde delivers innovative and sustainable solutions for its customers and creates value for all stakeholders. The company makes our world more productive by developing products, technologies and services that improve its customers’ economic and environmental performance in a connected world.
Our project team supported Siemens Healthineers AG in outsourcing Microsoft Exchange to the cloud by migrating over 70,00 mailboxes worldwide.
As part of the takeover of the German paper napkin business of Metsä Tissue Corporation by keeeper Group, we supported the separation of the IT landscape from the parent company and the transfer to a standalone operation.
Today, the product portfolio of the 100% holding of Mutares for a wide range of requirements includes steel structures, roof, and facade solutions, as well as wood products for interior finishing and building cladding. Donges thus serves architects, planners, building developers, general contractors and builders, the public sector as well as craftsmen and processing companies. The Donges Group employs over 1,200 people at 13 production sites in Europe and in sales offices worldwide and generates annualized consolidated sales of around EUR 500 million. Following the latest add-on acquisition (Permasteelisa), Donges is aiming for further growth and consolidation of its very good positioning in the European market. The cornerstones of this strategy are the realization of synergies through the joint processing of the existing customer portfolio and existing sales channels, as well as the development of Northern and Southern European markets in the areas of facade solutions and steel construction.
Data has long been considered the new oil. But without the appropriate processing, even oil is worthless. The same is true for data. Only when valuable information is extracted from it are data pools in companies valuable. One way to extract information for process optimization is process mining.
The idea for this blog post series arose from the situation at a customer, where we introduced CI/CD because the manual workload was no longer manageable. The following instructions are therefore fresh from practical experience. For simplicity, we have shortened the long road of trial and error and present here only the final results. The code snippets are exemplary but sufficient to present the functionality.
As of 1.5.2022, our consulting unit has signed a cooperation agreement with Cape of Good Code GmbH for the joint execution of software and technology due diligence services for M&A transactions. The aim of the cooperation is to use the DETANGLE analysis software developed by Cape of Good Code in digatus’ IT M&A business area. The growing demand for technology/software due diligence in M&A deals shows the increasing importance of software for the valuation and sustainable success in the acquisition of software-dependent business models.
Against the background of an already ongoing IT carve-out, we were assigned an interim management mandate. The interim manager acted in the role of “IT Service Manager (ITSM)”. Reporting was made directly to the Vice President Information Technology & Digitization and the Management Board.
A project is a business for a certain period of time. It has its own project organization consisting of different rules, roles, experience levels and communication structures. Due to complex project tasks as well as budget and time restrictions, the organization must not be neglected under any circumstances and must ensure a clear definition of tasks and responsibilities as well as a clear demarcation from the line organization. This is the only way to ensure cost- and time-efficient project progress. There are many different approaches to setting up the project organization and implementing the project – but what is inevitable is the use of employees across different levels of experience. This allows the distribution of tasks and responsibilities to employees with the appropriate level of experience. This makes the processing of tasks more effective and efficient in terms of time and costs. This article shows the different levels of experience that project management and consulting offer in the course of a career and the exciting tasks and responsibilities that are associated with them in the context of project work.
The world of IT is vast, so specialization in certain areas is the norm. If you decide to work in web development, there are, for example, specialists for the frontend as well as for the backend and you often read about the so-called fullstack developers. What are the differences and what motivation and skills should one have for the respective job? We asked our developers about this:
Starting a new job is very exciting because you get to meet a lot of new people and get involved in different projects. To show what starting at digatus can look like, I would like to give an insight into my first few weeks.
As part of the further development of Nokia’s own software Monetization Platform, we supported the Nokia team in integrating new features into the system and provided advice on technical issues.
What company is not familiar with this situation? A software product is quickly needed and downloaded – thus purchased under fully licensing regulations. In the background, the general terms and conditions and licence conditions are accepted with a mouse click and the horror begins for every SAM compliance officer in the company.
Meetings have long since become an integral part of our everyday working lives. We meet in different constellations and discuss various topics to pursue common goals. But if you take a closer look, you will notice that there are different perceptions and definitions. Because of these differences in perception and implementation, the quality and effectiveness of meetings vary. In the following, we have summarised our view of meetings and show which type of meeting is suitable for which objective, because not all meetings are the same.
At the beginning of the year, we relaunched our internal employee survey using the extensive Microsoft 365 product range. Edouard Streit describes how we proceeded in detail with the help of our practical guide, which is also intended to encourage people to follow our example.
The successful separation of a part of a company from a corporation requires a comprehensive understanding of the complex interrelationships and processes. Especially in the service sector, IT plays a central role due to the high delivery pressure, degree of automation and the close interdependencies of the systems used. A target-oriented approach is therefore required for timely separation and the development of new infrastructures in order to ensure operational capability in every transition phase and avoid production downtimes.
In the context of IT Carve-Out projects, four key scenarios in which the use of Microsoft 365 solutions on the target side should be considered. On the one hand, the licenses can be scaled up well and no own IT know-how in the company is necessary for the use. On the other hand, Microsoft 365 solutions offer a high level of data protection, disaster recovery, backups, and investment protection for server hardware.
In their strategic orientation, companies like to stick to the concept of Lean management, as it is considered the driver of efficient processes. However, it is not a classic management method in a conventional sense, but rather embodies a holistic mindset. The Lean management approach defines itself as a combination of different methods to create real added value for customers. In order to achieve this primary goal, it is necessary to avoid waste in the company and to identify and, if necessary, eliminate superfluous business processes.
A real blueprint for digatus – an order on which we were able to demonstrate our skills as a full-service IT service provider: the complete carve-out of a future SME company! The scope included the project management and execution of the IT carve-out in relation to the entire infrastructure, the non-SAP applications and the SAP system as a split copy from a corporation, as well as the gradual transition to digatus operation at our Augsburg data centre. With this full-service separation and transition in a short space of time, it was crucial to act quickly and in a structured manner, implement solutions tailored to the needs of the target as a future independent SME and to keep the three parties on the project team on the same track. Together with our SAP partner firms aplicado GmbH and Trigon Consulting GmbH & Co. KG, we were able to manage this project successfully.
Whether the business case of an M&A deal or divestment is successful or not depends on numerous factors. One often underestimated aspect is the design of the Transitional Service Agreement (TSA). Due to complex processes and company-specific dependencies, especially in the areas of IT, HR and finance, the outsourced unit (target) is usually not able to act independently from the beginning (Day1). Especially in the case of group spin-offs, it still needs support from the seller side for a transitional period in order to maintain the business operation. What this support should exactly look like is specified in the Transitional Service Agreement, which is concluded between the seller and the buyer and which usually has a term of about six to twelve months. Anyone who thinks that the parties will surely agree as the transitional time is so short, is mistaken. Our experience shows that a regular transition period, during which the outsourced unit can access the usual services as long as necessary in order to establish their own processes in parallel, in line with the new challenges and goals, is decisive for the successful start into independence and prevents time- and cost-consuming disputes between the parties. So, what shall be considered when designing a successful TSA?
The successful spin-off of a part of a company from a group requires a comprehensive understanding of the complex interrelationships and processes. Particularly in the manufacturing sector, IT plays a central role due to the high degree of automation and the close interconnections and dependencies of the systems used. The timely separation and establishment of new infrastructures therefore requires a goal-oriented approach to ensure operational capability in every transition phase and to avoid production downtimes.
Separating a section of an enterprise from an existing infrastructure entails many changes and major challenges. The interfaces to old systems have to be properly resolved and entirely separate, custom structures have to be created. In addition, the participants of a carve-out project are often confronted with problems of complex knowledge transfer, situation-related employee fluctuation and contractual time pressure. An example of a successful carve-out is the separation of the Siemens Turbomachinery Equipment GmbH from the Siemens AG by digatus.