With the M&A boom reaching new records: $3.8 trillion during 2006 (Thomson Financial) companies are looking at how to maximise their investment and minimise their risks. Based on recent research 50% of all mergers fail to achieve their expected benefits with IT becoming a more critical part of the failure and accounting for at least 20-30% of the post-acquisition benefits and in some industries as much of 50% of the integration costs. Research also shows that the lack of early IT involvement in the M&A process increases the IT integration risks and costs substantially. From an investor’s view point is therefore essential that the IT risks are properly assessed right from the start.

We offer the following packages: MA-IT DD(M&A IT Due Diligence), MA-IT DA (M&A Detail Assessment) and MA-IT PAR (M&A IT Project Review).

The MA-IT DD™ package is designed to offer investor companies an expert assessment of the target company’s IT operations, prior or immediately after the transaction is announced. This service provides investors with an expert assessment of the IT issues and risks that will need to be addressed to achieve an accurate valuation and post deal performance.

The MA-IT DA™ package is designed to provide investor companies an expert detailed assessment of the acquired company’s IT operations and a detailed post-acquisition IT integration strategy and plan. This service provides a clear roadmap for Day 1 operational imperatives, Day 101-365 (transition projects to obtain quick-win synergies) and Day 366+ (transformation and innovation projects for achieving growth, productivity and new revenues)

The MA-IT PAR™ package is designed to provide investor companies an expert review of the previous acquisition or merger IT project undertaken. This service provides a detailed assessment of the lessons learned and best practices for the next M&A transaction.

The assessments are carried out by M&A IT specialists from VICL who are experts in the IT operating and business environment of the target company. The services are highly tailored to meet the individual investor’s needs whatever their circumstances. They are developed to respond rapidly and flexibly taking into account that there is often very little time between the deal announcement and its execution. They are also designed to cover multiple geographies, cultures and languages.

Approach

All the assessments start with a clear scope and terms of reference agreed with the client. VICL recognises that each M&A deal is unique in some form or other; therefore we propose a scope that is right for the specifics of the deal. All the particulars of the engagement including, scope, deliverables, timetable, completion criteria and fees are agreed at front so the investor knows what he or she will get for the investment made. In all the assessments the final product is typically a management report outlining the key IT issues and risks and the IT synergies, if any, with clear recommendations, including likely implementation costs, benefits and timetable. In the case of the IT Project Review the management report will provide a detailed analysis of what worked and why, what could be improved and why and a summary of the lessons learned and best practices for the next transaction.

Summary of Benefits, Deliverables & Application of the IT Assessments

Our packages are tailored to meet the individual needs of large or small, domestic or international, private equity or corporate investors. The typical deliverables and benefits of each IT assessment package are shown in the table below:

MA-IT DD Package	MA-IT DA Package	MA-IT PAR Package	Typical Deliverables	Typical Benefits
			Management report	Clear risk assessment and action plan
			Management report	Detailed integration strategy and plan including short, medium and long term
			Management report	Detailed assessment of results against original objectives, key lessons learned and best practices

Why VICL

Our consultants are ex Big 4, senior independent consultants with extensive experience in the M&A IT, business sectors and corporate finance transaction processes. They are multi-lingual and experienced in both UK and cross-border M&A transactions. They are available at short notice and offer real value to both the private and corporate investor companies.