By Mark Anderson, Managing Principal
When preparing a business for acquisition, most owners focus on financial statements, client rosters, and market positioning. But there’s another critical area that potential buyers scrutinize closely: your IT infrastructure.
From the state of your existing technology to its scalability and efficiency, your IT landscape plays a pivotal role in determining your business’s value and appeal.
In this blog, we’ll explore the five key IT areas that buyers evaluate during due diligence and outline steps you can take to get your tech in shape for a seamless acquisition process. Without further ado, let’s jump in.
1. Current Technology
It’s not just about what technology you have—it’s about how well you’ve maintained it. Buyers will carefully assess the current state of your systems, tools, and processes to estimate how much work will be needed to bring them up-to-date or integrate them into their own environment.
Why IT Matters: If your IT systems are outdated, inefficient, or poorly maintained, it signals additional costs for the buyer. Conversely, well-maintained, modern technology can make your business a more attractive investment.
Gold-Star Tech Looks Like:
- Up-to-Date Systems: Ensure your software licenses, operating systems, and hardware are current and well-documented. Buyers prefer businesses that prioritize regular updates and maintenance.
- Documentation: Maintain detailed records of your IT assets, including software versions, hardware inventory, and maintenance schedules. This transparency builds confidence in your operational integrity.
Actionable Step: Conduct a thorough IT audit to identify outdated systems and areas requiring immediate attention. Address these before entering acquisition discussions
2. Protected Assets
Your intellectual property (IP)—patents, trademarks, or proprietary systems—is a significant asset, and buyers want assurance that these assets are secure and compliant with regulatory requirements. Beyond the legal protections, your cybersecurity measures must demonstrate that you take defending your IP—and all your other sensitive data—seriously.
Why IT Matters: Unprotected assets or sub-standard cybersecurity measures can expose your business to legal liabilities, data breaches, and reputational harm—major red flags for potential buyers.
Suitable Cybersecurity Measures Might Include:
- Aligned Defenses: Ensure your tools, systems, and processes meet the compliance standards relevant to your industry (e.g., HIPAA, SEC, ).
- Proactive Measures: Implement multi-factor authentication (MFA), mobile device management, encryption, and phishing simulations to reduce vulnerabilities.
- Clear Documentation: A documented history of penetration testing or vulnerability assessments shows that you’re aware of risks and working to address them.
Actionable Step: If you don’t already have comprehensive cybersecurity measures in place, prioritize a risk assessment. Even if not all recommendations are implemented before the acquisition, knowing what needs to be done demonstrates your awareness and planning.
3. Growth Potential
Buyers often look for businesses with untapped growth potential, whether through market expansion, additional product lines, or new services. Scalable IT infrastructure can make or break these plans.
If your systems are built to grow with the business, you’re positioning yourself as a ready-made platform for expansion.
Why IT Matters: Outdated, rigid infrastructure signals significant investments will be required to scale operations post-acquisition. On the other hand, scalable systems lower future costs and make expansion easier.
Scalable IT Infrastructure Means:
- Cloud-Based Solutions: Cloud-hosted storage and data backups provide flexibility and ensure secure, remote access to data as the business grows.
- Centralized Management: Systems that integrate seamlessly across departments reduce inefficiencies and promote collaboration.
Actionable Step: Transition to scalable IT infrastructure if you haven’t already. This could mean migrating data to the cloud, upgrading legacy systems, or implementing modern collaboration tools like Microsoft 365.
4. Adequate IT Support
A successful acquisition depends on more than just technology; it also relies on the people who manage it. Buyers will evaluate whether your IT support is sufficient to oversee systems during the transition and beyond. Without adequate assistance, IT can become a significant obstacle in the integration process.
Why IT Matters: Understaffed or under-skilled IT teams create delays, inefficiencies, and additional costs during integration. Buyers want assurance that IT operations can continue smoothly without major disruptions.
Suitable IT Support Could Be:
- Internal or External Support: Whether you have an internal team, a co-managed setup, or a fully managed external provider, the key is ensuring adequate coverage and expertise.
- Proactive Management: An IT team that monitors systems, resolves issues quickly, and ensures uptime adds to the appeal of your business.
Actionable Step: Assess your current IT support structure. If gaps exist, consider investing in external managed IT services to bolster your capabilities before acquisition discussions begin.
5. Overall Efficiency
Efficiency is another critical metric for buyers. If your systems are disjointed, slow, or manual, they’ll see inefficiencies that could impact productivity and profitability. Conversely, streamlined systems that enable your team to work effectively make your business a more attractive prospect.
Why IT Matters: Efficient systems improve revenue and customer experience while reducing the need for additional hires to fix inefficiencies. Buyers want to see that your business is running as smoothly as possible.
Improved Efficiency Could Come From:
- Automation Tools: Automating routine processes reduces manual errors and saves time.
- Integrated Platforms: Unified systems that connect departments and streamline workflows increase transparency and productivity.
- Optimized Processes: Processes that minimize downtime and maximize employee output demonstrate operational maturity.
Actionable Step: Work with your IT team or provider to identify areas of inefficiency and implement solutions. This could include process automation, upgrading slow systems, or integrating software platforms.
The Value of IT in Acquisitions
As we explored in this blog, when it comes to acquisitions, IT is no longer just a backend function—it’s a critical component of business value. Buyers want to see a well-maintained IT landscape that is secure, scalable, and efficient. By addressing these five key areas, you’ll not only make your business more attractive to acquirers but also position it for success under new ownership.
Preparing your IT landscape takes time and investment, but it’s worth the effort. After all, no buyer wants to inherit a digital mess. With the right IT foundations, you’ll command a higher valuation, reduce friction during the acquisition, and ensure your business is ready for the next chapter.
Anderson Technologies: Real People Creating Business-Changing IT Solutions
For over 25 years, Anderson Technologies has leveraged our expertise for the benefit of our clients, supplying them with suitable, secure IT and strategic guidance for their technological future.
We’re a dynamic team of IT professionals with over 200 years of combined experience and specialist certifications to back up our knowledge. As a trusted advisor, we don’t just focus on today. We strive to take your technology light-years ahead of your competition and scale with your business’s success.
Ready to secure your business? Contact us today to get started.
