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A small company in the West Midlands was merging with a larger organisation.
The acquiring company wanted reassurance that the target was sustainable, and in good order. They were worried that the target company might require significant investment in IT systems post acquisition, and the technologies employed were unfamiliar.
We did a short, low cost due diligence review, interviewing management and technical staff in the target company, as well as general members of staff, after which we wrote up a short report.
We found that the target company was very well run, with sustainable IT infrastructure. However, we did find some issues with some processes, particularly with some in-house development that had taken place and where documentation was not up to standard. This represented a risk to the acquiring company, as a key system was dependent upon the availability and good will of an individual member of staff. Changes and updates to the system would be very difficult to undertake without that single individual.
The target company agreed to undertake a documentation review, as well as certain other process changes. They embarked upon the programmes with enthusiasm, as they felt vindicated by the report and were open to the new ideas.
The acquiring company was comfortable in proceeding with the transaction, and the two organisations are now integrated successfully.