In an effort to assist organizations discover and mitigate potential risks which can seriously influence the value of an acquisition, Primitive Logic and AsTech Consulting, have launched a Merger & Acquisition (M&A) Tech and Security Due Diligence Partnership.
This partnership focuses on providing material information about technologies and products, including security, to key stakeholders involved in a M&A deal negotiation.
With this launch, more organizations and investment advisors will have access to qualified IT and cyber security experts that can help uncover hidden issues to more accurately guide valuations throughout M&A negotiations.
“Hidden IT complexities and cyber security vulnerabilities in software and network infrastructure pose great risks to successful mergers and acquisitions,” said Andrew McDonnell, president, AsTech Consulting.
“However, assessing these aspects of target companies have been traditionally ignored during the M&A due diligence process, but that is no longer feasible,”
“Through this partnership with Primitive Logic, we’ll be able to help organizations better understand the overall cyber risk to the combined entity as well as the costs and level of effort required to combine IT infrastructures.”
M&A is a hot topic.
According to Deloitte, 75% of surveyed organizations will be in discussion or actively involved in M&A activities in 2017.
However, the nature of M&A itself poses technical, security and privacy risks that must be identified and understood before the transactions are completed, during the integrations process and even after completion of the transaction.
Additionally, what constitutes “due diligence” is changing.
Where once it predominantly comprised assessment of the financials, channels and partnerships, it must now expand to include technical and security evaluations of Intellectual property, networks and processes.
There are many risks, therefore it’s critical to assess the details of how a company is run technically, how that company is protected from a cyber security and privacy perspective, and what unknowns might affect product or technical integration success.
A focused technical and cyber security “deep dive” will uncover any vulnerabilities in platform or system architecture, overlooked or unanticipated complexities with integration, and security weaknesses or breaches–all of which can potentially cost companies millions of dollars in remediation and have a material impact on the deal.
“This strategic partnership combines years of experience, skill and knowledge in the key areas often overlooked in the M&A due diligence process – enterprise architecture, systems integration and cyber security – and brings them to the forefront,” said Jill Reber, CEO, Primitive Logic.
“We have been implementing and integrating complex large scale systems for over 30 years, so we understand how costly it can be to overlook potential technology pitfalls in a merger or acquisition process. Our resources can quickly find and size potential risk areas to inform you about the information you need to know.”
In today’s world where IT errors or oversights and security breaches are becoming more prevalent, it is the chief executives and board members who are being increasingly held accountable by their internal and external stakeholders.
Legal disclaimers no longer excuse liability. Astute executives are scrutinizing potential IT risks and security threats prior to a merger or acquisition close, rather than waiting for concealed glitches to appear that could cause data and security breaches or generate expensive remediation costs down the road.
Primitive Logic and AsTech both have mature digital business, IT, and security solutions and practices, having worked with world-class organizations for more than 25 years and delivering exceptional value to their clients.
Together, with a joint go to market strategy and integrated offerings, they look to assist organizations who are thinking about, planning for, or engaged in a merger or acquisition for either product centricity or organizational growth.
Offerings centering around a Rapid Assessment, covering key areas and identifying potential risks, and a Comprehensive Assessment, involving greater in-depth analysis, testing, and costing are available today.