Due Diligence: Operations Management–Technology

Performing a thorough due diligence on a potential acquisition is one of the most important tasks that a buyer needs to do when making a purchase decision.  We’ve put together a list of items that buyers will want to investigate when talking to a seller.

This is part of a large series. Be sure to scan our Buyers Blog for the category Due Diligence.

Now we’re moving on into evaluating the Operations Management of your potential acquisition portion of your Due Diligence tasks. The purpose of this section is to understand the Technology in use and how it is different and similar to your existing business culture.

Technology

– What systems use third-party software, and which ones use custom-built solutions? Are the third-party systems under maintenance contracts, and are the most recent versions installed?

– To what degree have third-party systems been modified? Have they been so altered that they can no longer be upgraded?

– What is the level of difficulty anticipated to integrate the company’s databases into the buyer’s systems?

– Are there adequate backup systems in place with offsite storage, both for the corporate-level databases and for individual computers?

– What is the level of security required for access to the company’s servers?

– What security measures are in place to protect data?

– What backup systems are used?

_____

Do you know what your business is worth? Find out quickly with our online business valuation tool. No strings attached! https://www.sellmymsp.com

BlogFeed Sellers Blog Twitter Twitter Facebook Facebook LinkedIn LinkedIN