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.
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.
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.
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.
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.
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.
