IT Due Diligence in Private Equity: What You Should Be Asking

IT Due Diligence office team

Whether you’re a private equity (PE) firm evaluating your next investment or a small to medium-sized business (SMB) preparing for acquisition, understanding the scope of IT due diligence can significantly impact the success of your transaction. During due diligence, seemingly simple questions about software licenses or backup procedures can uncover significant opportunities or risks that impact valuation and post-acquisition planning.

Previously on the blog, we’ve explored just how important IT due diligence is during the acquisitions process (you can read it here). Today, we’re inviting you to join the conversation.

Use this article as a jumping-off point to inspire questions about IT due diligence for your own business—then check back here later this month for a recorded Q&A session, where Anderson Technologies’ experts will address your queries (and provide some much-needed clarity).

Critical Areas That Often Raise Questions

1. Technology Stack Assessment

Every business has its unique combination of systems and tools, but how do you evaluate if they’re the right ones? Consider whether the current technology stack aligns with industry standards and growth objectives. Are systems integrated effectively, or are there potentially costly inefficiencies hiding in plain sight?

2. Documentation and Compliance

While most businesses maintain some level of IT documentation, the real question is whether it’s comprehensive enough for a smooth transition. How detailed are your records of system configurations, vendor contracts, and data management practices? More importantly, can you demonstrate compliance with industry-specific regulations?

3. Infrastructure Scalability

A technology foundation that supports current operations might not be equipped for aggressive growth plans. Have you evaluated your infrastructure’s capacity for expansion? What about cloud migration strategies and their implementation timelines?

4. Security Posture

Cybersecurity isn’t just about having the right tools—it’s about understanding how well they’re implemented and maintained. Are security measures aligned with business risks? How do you validate the effectiveness of your security programs?

Send Us Your Questions

Of course, these considerations barely scratch the surface of what a comprehensive IT due diligence process should cover. The real value lies in understanding how these factors specifically apply to your situation and what they mean for your transaction’s success. The key is knowing which questions to ask about your specific circumstances—and having a trusted partner to answer them.

That’s why we’re opening the floor to all your PE acquisition questions. Send them our way via email or our socials, and we’ll delve into the answers that matter most to you.

We’re here to help!

Anderson Technologies: Real People Creating Business-Changing IT Solutions

For over 30 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.

In 2022, Hadley and her husband Corbitt decided to return to St. Louis to join the family business. As part of the second generation, Hadley brought fresh perspectives from her time at AT&T and was drawn to helping the company grow the right way by implementing scalable systems and processes, while maintaining the core value-centric culture.
 
As a Project Manager, Hadley facilitated technical projects and the development of interdepartmental playbooks while gaining a deep understanding of the inner workings of the business operations. Now, as the Project Management Lead, Hadley is known for her driven, process-oriented leadership and her dedication to finding solutions for every challenge no matter how daunting it may first seem.

Born in Yokohama, Japan, and raised in Malaysia and St. Louis, Corbitt developed a unique global perspective. He graduated from Randolph-Macon College with a degree in Political Science and Spanish where he was a member of the men’s basketball team.

Before joining Anderson Technologies, Corbitt built a successful career at AT&T which initially started in the B2B Sales Development Program – a highly-competitive sales training where he was stack-ranked against his 100+ peers based on quota attainment to determine where in the company one was placed. In Chicago, as part of the National Fiber Organization, he became a top-performing sales professional, selling AT&T’s fiber, networking, and cybersecurity services and learning the value of relationship building, perseverance, and grit. Later, as a Senior Sales Solutions Engineer at AT&T headquarters in Dallas, he refined his technical expertise, leadership skills, and consulting abilities.

Currently pursuing his MBA at Washington University in St. Louis, Corbitt blends strategic thinking, technical knowledge, and a client-first approach to help Anderson Technologies continue serving companies and organizations across the country.

Corbitt Grow Headshot