Technology risks have become a significant factor in determining the success or failure of mergers and acquisitions. Whether an organization plans to operate its acquisition as a stand-alone entity or integrate it into an existing platform, consideration related to its current technology costs, service agreements and security posture, and regulatory and compliance obligations all play a role in determining the long-term success of the transaction. Existing technical risks in a target can affect the deal conditions or price. Performing a technology due diligence assessment as part of an acquisition can uncover risks, ensure a complete picture of the assets and liabilities an organization acquires, and potentially avoid costly investments to address the inherent technology risks of the target company as well as IT needs that have been deferred or neglected.
