With our experienced consultants, challenges can be successfully mastered even in complex M&A projects. We focus on comprehensive coverage of the entire transaction process from an IT perspective, from initial identification and assessment of opportunities and risks, to support with contract and license management, to stable operation. As a partner with cross-industry expertise in national and international M&A transactions, we assume the role of IT M&A advisor.
In the case of a company acquisition, due diligence involves a detailed examination and evaluation of the target company, taking into account its financial, legal, tax and economic status. IT due diligence provides information on the strategic, operational and financial opportunities and risks of IT, which is used in the purchase decision, price negotiation and subsequent post-merger integration. Our focus here is on making reliable statements about the IT status and possible restructuring scenarios at an early stage by analyzing the target IT and drawing up business plans.
Software and technology are two factors, which are becoming more and more important in the M&A environment. Decision-makers are often faced with the challenge to find the right technology for their use case. digatus has many years of experience in advising and evaluating technology or software-driven transactions. Learn more about Technology & Software Due Diligence.
Contract & License Management
Optimizing contract and license management is essential for cost-efficient IT. Even before the carve-out, we provide support with IT-related issues surrounding the Sale and Purchase Agreement (SPA) and the Transitional Service Agreement (TSA) so that business operations are not jeopardized during the sale of the company. An initial analysis, categorization and evaluation of the existing contracts provides an overall view of costs, contract terms and contract types within a very short time during the carve-out. The determined actual situation serves as the basis for the individual concept proposal and the subsequent implementation with the customer. Cost synergies can be exploited with license model adjustments and harmonizations as well as the use of bundling effects. An initial analysis often shows additional potential for “downscaling” – i.e., service level, maintenance, and license contracts that are no longer needed or oversized are terminated.
Whether carve-out or stand-alone projects – the carve-out of a business unit is a complex process for both the selling and the receiving side, encompassing legal, contractual, procedural and financial aspects. The uninterrupted business activity of the target must be ensured throughout the entire transaction process. We take on the conception of the spin-off or separation of entire IT architectures of parts of the company with active change management for processes and organizations. Rapid independence of the target creates the prerequisite for process and cost optimization and at the same time offers the possibility of aligning IT with the long-term corporate strategy.
For the implementation of the synergy effects identified in the business case, there is often a lack of professional consulting and implementation with regard to the necessary activities within the post-merger integration (PMI). In this context, the integration of IT organizations and processes into existing structures is essential. At the same time, technologies are consolidated in line with the “best of both” approach in order to leverage the technological strengths of both units. We are responsible for and implement the entire IT, including ERP systems, applications and IT infrastructure. To ensure that the integration process is as efficient and smooth as possible, we also focus on conducting training and clear communication with all stakeholders.
Following the transaction process, the target is transferred to optimized IT operations. For us, consulting services and implementation go hand in hand. As a consulting and services group, we offer optional full-scale operation of IT infrastructure and applications in addition to consulting services.
Christoph Pscherer is responsible for IT M&A and together with his team, is the ideal contact for questions or concerns regarding due diligence, contract & license management, carve-out and integration.