CHAPTER 2: WHY IS IT IMPORTANT IN DUE DILIGENCE?
Overview
On many deals the value proposition may be underpinned by IT systems or data (e.g. future growth needs to be supported by more system or project investment, projects to deliver cost-savings/new capabilities, etc.). In addition the cost/investment assumptions around IT may not be realistic – exposing the purchaser to unforeseen costs and inadequate benefits from projects. When acquiring new businesses buyers often do not consider the IT systems and services for the company they are buying. Even large companies can have problems – for example, in 2012 computer issues impacted the ability of United Airlines to take reservations and to service customers following their merger with Continental. ...
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