IT Due Diligence
IT Due Diligence is the systematic assessment of a target company's IT landscape prior to a transaction. It evaluates architecture, licensing, contractual obligations, cybersecurity posture, technical debt and cloud maturity. The output is a quantified risk and investment profile.
IT Due Diligence in practice
IT Due Diligence typically runs within 2-6 weeks during the transaction phase. Areas of review: (1) infrastructure modernity and cloud readiness, (2) cybersecurity including penetration test findings and NIS2 compliance status, (3) licence compliance (Microsoft, Oracle, SAP), (4) vendor contracts and termination options, (5) IT staff and key skills, (6) IT budget vs. industry benchmarks. Output: red-flag list, investment requirement in EUR for 24 months, carve-out complexity (where a carve-out is planned). For private equity investors, IT Due Diligence is a mandatory workstream alongside commercial, financial and legal diligence.