Spring 2014 issue of Horizons

Merely identifying the IT risks is not enough. RubinBrown recommends during due diligence that the risk factors be identified and an IT road-map for improving the IT operations of the business be put in place. This strategy will prove helpful so that on day one post-deal, the buyer is ready to execute and make the necessary improvements and has a real perspective on the capital and expense costs for IT. It is very important for any buyer to quickly fix any issues identified during due diligence so that everyone can focus on growing and expanding the company. After all, this is how the investment pays off.

In the case of a carve out, will a new data center need to be developed or sourced?

Outsourcing Has their security been assessed to protect your confidential information? Their security failure can be your reputational failure. Key-man risk What happens if we lose the key person who knows “everything” about our IT? How long will it take to replace key IT personnel? What will be the interim cost? Rogue IT Has freeware been installed that could be sending information to competitors? Does the sales force use third-party software to store/share customer information? How can we ensure the information isn’t compromised if any sales staff leave?

RubinBrown’s Mergers & Acquisitions Services Group RubinBrown’s team of mergers & acquisitions professionals has the experience to help your organization successfully navigate the transaction process.

Ben Barnes, CPA — St. Louis Partner-In-Charge Mergers & Acquisitions Services Group 314.678.3531 ben.barnes@rubinbrown.com

Rodney Rice, CPA — Denver Partner Mergers & Acquisitions Services Group 303.952.1233 rodney.rice@rubinbrown.com

Tim Farquhar, CFA, CPA — St. Louis Partner Mergers & Acquisitions Services Group 314.290.3281 tim.farquhar@rubinbrown.com

Sunti Wathanacharoen — Kansas City Partner Mergers & Acquisitions Services Group 913.499.4462 sunti.wathanacharoen@rubinbrown.com

Audrey Katcher, CPA, CISA, CITP — St. Louis Partner Business Advisory Services Group 314.290.3420 audrey.katcher@rubinbrown.com

Kyle Murphy, CFA, CPA — St. Louis Manager Mergers & Acquisitions Services Group 314.678.3511 kyle.murphy@rubinbrown.com

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