International FinTech Group - Digital / IT Due Diligence
A digital / IT due diligence in the context of specific M&A considerations.
During intensive M&A considerations, a successful FinTech Group with a market presence in several countries had been in focus.
Due to the importance of IT in this business and to better evaluate the future potential for specific strategic scenarios, a digital / IT due diligence was performed. This exercise was performed while further due diligence assessments and valuation discussions were ongoing in parallel.
The goal of the project was to perform a digital / IT due diligence considering the following key points in particular:
- Understand the strengths and weaknesses of the current IT setup (organization, governance, processes, architecture, sourcing, project portfolio)
- Understand the strengths and weaknesses in the digital business model regarding technology and digital / IT operating model aspects
- Compare the corporation against common digital / IT benchmarks and digital / IT key metrics
- Identify potential risks ("red flags")
The following approach has been taken to perform the digital / IT due diligence:
- Settings session with the M&A team and defining a wish list for the data room
- Analysis of the provided documents in the data room
- Interviews with nominated stakeholders
- Site visit and walkthrough sessions with company representatives
- Compilation of the draft version of the digital / IT due diligence report
- Review and discussion with the M&A team and further stakeholders to agree on steps for eventual remaining topics
- Final activities and finalization of the digital / IT due diligence report
The project length for performing the digital / IT due diligence was approximately 10 weeks.