Appendix B: Sample M&A IT Checklists

Abstract

T he checklists in this appendix can serve as a guide to a CIO and his or her team in preparing for M&A events, including conducting due diligence, crafting and implementing an information technology (IT) integration or divestiture plan, improving synergies, and preparing for future mergers. The right set of capabilities, knowledge, processes, tools, and experience can help prepare an IT organization to effectively support the business's M&A goals. The checklist examples that follow are tools that can be tailored to an organization's needs and included in its M&A tool kit and playbook. IT DUE DILIGENCE An IT due diligence checklist can be used by a potential buyer when assessing a target during the due diligence phase. The potential buyer may use a checklist to validate that none of the critical areas of a target's IT function have been inadvertently overlooked during the due diligence period. The IT due diligence checklist can also be used when preparing for a divestiture. Prior to engaging potential buyers, the seller can use the checklist to evaluate its IT function and identify any areas where there are issues or risks that might impact the sale. The seller can then address any issues discovered during this predeal time or determine a course of action to mitigate the risks and increase the IT function's perceived value. Moreover, the areas in the checklist can be used by the seller to support the detailed due diligence effort by helping the seller determine the information it might have to pull together for the data room and by helping the seller identify what documentation it may need to create if it is not readily accessible. See Exhibit B.1 for a sample IT due diligence checklist that can be used by either the seller or the buyer.