Chicago, IL – January 29, 2009 – The Revere Group, an NTT DATA Company and a leading global business and IT solutions consultancy, has developed a specialized IT due diligence practice geared at providing rapid, yet thorough, IT due diligence of acquisition target companies. The practice area works with merger and acquisitions, private equity firms and other similar entities.
“Revere’s goal is to quickly and completely uncover and quantify any costs as an important input to the acquisition negotiation process,” said Alberto Ruocco, Revere Practice Area Leader. “Typically, the due diligence process simply glances at, or ignores the target’s IT infrastructure, applications and processes. Since process efficiencies across an investment platform are often enabled by information technologies—and these efficiencies are significant platform value drivers—acquiring companies would often discover additional IT investments were required to realize the full value of their investment strategy.”
Developed in concert with several private equity acquisitions, Revere’s due diligence methodology evaluates the key technology components of a potential target, including the organization/people, processes, infrastructure, and the scalability and reliability of the enabling technologies. It also investigates the back-office and customer-facing systems. Key outputs from the methodology include:
- Current IT operational cost estimates
- Upcoming spend estimates (3-, 6-, and 12-month intervals)
- Personnel skills assessment
- Capability to execute key IT processes
- Software, hardware and contract inventory
- IT consolidation opportunities and potential savings
“With the evolution of IT hardware and software giving way to flexible deployment architectures, private equity firms can drive economies of scale across a portfolio of companies by leveraging these flexible architectures,” stated Ruocco. “The technology analysis and sourcing expertise, however, is often not available in-house. Revere’s expertise gives portfolio managers the opportunity to realize the economies of scale.”
“During the course of any corporate divisional carve-out, merger or strategic acquisition, the supporting IT infrastructure plays a pivotal role for success,” stated Michael Parks, Revere CEO and Founder. “Our methodology and IT infrastructure experts have the experience and insight to quickly give firms an assessment of the IT readiness of their potential acquisition.”
About The Revere Group
The Revere Group is a leading global business and IT solutions consultancy that specializes in assisting high-performing, mid-tier and fast-growing companies. Revere provides industry, process and technology expertise with a proven service approach—Think, Build, Source—to pave the way for your success. The Revere Group has offices in Chicago, Boston, Charlotte, Denver, Los Angeles, Milwaukee and Orlando. As a trusted advisor to its clients, The Revere Group is committed to improving its clients’ business and IT alignment. www.reveregroup.com