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Tech DD – Essential IT Budget Information

  The IT Budget Challenge during Tech DD The IT budget for Tech DD is typically submitted late in technology due diligence assessments. But once submitted, they can drastically change the observations, and conclusions, made. Technology Due Diligence Late submission results in last-minute follow-up interviews and requests for information. Sometimes having to inform both the investor and CEO that some further investigation is needed. Of course, that can create unnecessary worries on both sides. I believe a significant barrier to supplying this information on time is simply not knowing what to submit. Tech leadership can submit their current IT budget. As the IT budget will be under scrutiny by outsiders, most leaders want to get it right. Creating a delay. Management is often fearful of the facts – perhaps they may highlight gaps in decision-making or the team. The benefits of assessing the IT Budget for Tech DD The main benefit of assessing the budget is getting mutual aw
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A management buyout necessitates a better technology strategy

  A Management Buyout typically means adapting your tech strategy to a faster pace. Learn more from these MBO case studies. Your firm has successfully navigated the tricky waters of a management buyout.  Congratulations!  But this isn’t the time to celebrate. Now the hard work begins, and you need to adapt your tech strategy accordingly. IT Due Diligence What do you need to do first? The short answer is to be ready to ramp up the pace and potentially change strategy. In previous articles, we discussed whether you’re ready for the scaling challenges ahead and to consider the type of investor or buyer you’ll be working with. Now let’s get ahead of the tech strategy and pacing concerns that may be relevant to you post-deal. Being ready for an uplift in ‘pace’ of technology strategy following a management buyout is often recommended during technology due diligence. Because we notice many teams do not adapt well or quickly after a deal. We’d like them to maximise their returns f
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3 Tech DD Trends You Need to Know

  As an investor, it’s essential to be up-to-date on the latest industry trends. The need to keep informed is especially true in the tech sector, which is notoriously volatile, even without recovering from a global pandemic and recession on the horizon. Information Technology Due Diligence To help you stay ahead of the curve, we’ve compiled a list of three tech trends that you need to know. These trends are based on our findings during technology due diligence. Cyber concerns are raising serious red flags. Technology leaders need to emphasise securing our data as we become more’ digital’. Speaking with cyber experts, they state that the low barrier to entry and the current economic climate will prompt more people to turn to (cyber) crime. We noticed the rise of cyber concerns during the pandemic. Unfortunately, cyber concerns are typically 50% or more of a modern Tech DD report. There are many reasons why firms may not be aware of the seriousness of these threats and how they
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IT Due Diligence Preparation For Startups

  Introduction IT Due Diligence assessments are typically commissioned by investors if the startup is either a SaaS business or one where the technology represents significant value in the business growth plan. Startups are often lauded for their innovation, creativity, and risk-taking. But these same qualities can also lead to problems in IT and SaaS-driven businesses. Technology Due Diligence As startups tend to focus more on building new features than on sound processes. This focus on new features can lead to data breaches, tech debt, and other costly problems. Our role is to assess the value that tech presents in your business, how it’s built and evaluate the team that makes the tech. Let’s look at what IT due diligence is and how you can prepare for it. IT Due Diligence isn’t about the tech; it’s about YOU The investor is investing in you, not just the P&L. They need to understand your vision, what makes you tick, how you make decisions and most importantly – how you
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The Most Common IT Due Diligence Traps

  Investors often overlook IT due diligence when assessing a target company for acquisition. While it is true that the IT function represents a relatively small portion of most companies’ overall enterprise value, overlooking IT due diligence can be a costly mistake. This is because the IT function is often critical to the company’s ability to generate revenue and profit. Furthermore, many problems that can arise from an acquisition are due to integration Issues – in particular, problems with integrating the target company’s IT systems with the acquirer’s IT systems. Therefore, performing IT due diligence is essential to the M&A process.This blog post will provide an overview of 20+ red flags investors should look for when performing IT due diligence on a target company. IT Due Diligence Red Flags related to the Team Lack of investment in personal development is prevalent in the technology industry. This is obvious when we assess teams during IT Due Diligence. Hence the diligenc
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How to Hire an IT Project Manager for mid-cap firms

  Digital Transformation needs a strong IT Project Manager to succeed. If you’re a CTO of a mid-cap portfolio firm, you know finding the right IT Project Manager is a challenge. Technology Due Diligence Without the right IT Project Manager, your projects can be drastically impacted. Important timelines will slip, and a lack of capability can affect the end result, employees, customers and the board.  IT Projects do not tend to provide instant results. So, you don’t often know you’ve got a problem until your projects slip. This can be months after hiring, so recruiting the right person is even more important. But what is the definition of the ‘right’ Project Manager? Does this person exist, and how do you ensure you hire the right one? In this blog, I share why a specific type of IT Project Manager is needed for PE-backed firms. I also share our methodology to identify the right IT Project Managers. What I Learned from Hiring 20 IT Project Managers in a single firm I learned
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How to Hire an IT Project Manager for mid-cap firms

  Digital Transformation needs a strong IT Project Manager to succeed. If you’re a CTO of a mid-cap portfolio firm, you know finding the right IT Project Manager is a challenge. Without the right IT Project Manager, your projects can be drastically impacted. Important timelines will slip, and a lack of capability can affect the end result, employees, customers and the board.   Technology Due Diligence IT Projects do not tend to provide instant results. So, you don’t often know you’ve got a problem until your projects slip. This can be months after hiring, so recruiting the right person is even more important. But what is the definition of the ‘right’ Project Manager? Does this person exist, and how do you ensure you hire the right one? In this blog, I share why a specific type of IT Project Manager is needed for PE-backed firms. I also share our methodology to identify the right IT Project Managers. Most firms want to ensure their value creation plans provide the bext value fo
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