| Customer: A Connecticut-based Private Equity (PE) firm | Profile: The PE firm acquires mid-sized companies in niche markets and provides capital and management support to improve sales and operations.
Services: IT Due Diligence |
| Size: 11-50 employees | |
| Region: Westport, CT | |
| Industry: Venture Capital and Private Equity |
Business Need
The PE firm acquires companies that they could own forever and that exhibit a clear “reason to exist”. The firm is passionate about partnering with outstanding management teams and supporting them with steady growth capital and creates accretive value in each of its portfolio companies – either organically or through mergers with other strategic acquisitions. Analysis of a potential M&A was in progress when the client was looking for IT Due Diligence Assessment Services for a new acquisition.
The company the PE firm was looking to acquire was carved out from a larger organization. It had open access to apps and IT services. Since multiple parties were involved, the PE firm needed to identify a standalone IT profile for secure and careful treatment of information gathered and analysis results.
The client got in touch with Synoptek for IT Due Diligence Assessment Services , so they could make ROI-driven technology decisions.
Solution and Approach
Synoptek partnered with the PE firm to meet their IT objectives. As part of the project, we carried out a detailed assessment of the client’s existing IT environment and offered a number of recommendations that would help the client achieve the desired M&A goals. Our recommendations included:
- Streamlining operations by modernizing technology
- Leveraging cloud systems to enable scalability and reduce capital costs
- Consolidating and simplifying systems to reduce total cost of IT
- Implementing a common platform to unify operations and enable profitable growth.
Our IT Due Diligence Assessment Services were offered in three phases:
Phase I: Identify merger synergies
- Identify and compare all software in use including line of business systems (ERP, CRM), workplace productivity (O365) and communication/collaboration tools
- Standardize laptop deployment
- Implement integrated security across all platforms
Phase II: Optimize operating cost efficiency
- Make use of shared processes and systems
- Leverage global delivery teams
- Implement process automation and standards
- Leverage the breadth and depth of subject matter experts from a vendor like Synoptek.
Phase III: Become market leader as a combined company
- Enable joint business process improvements
- Enhance application performance through automation
- Enable policy enhancements and ensure adherence
- Drive digital transformation across security, mobility, analytics, and cloud
Along with due diligence, we also provided a PostMerger Integration (PMI) Plan to the client to help them get maximum results from the merger. Our PMI recommendations included:
- Expand IT function and enhance value at lower costs
- Make IT costs flat fee and predictable
- Reduce monthly fees through IT redesign and cloud services
- Enhance views into client portfolios
- Improve workflow through automated processes to improve quality and margins
- Increase efficiency, so more time can be spent on business-critical functions instead of administrative tasks.
Business Results
With Synoptek’s assessment, recommendations and guidance, the client obtained insight into existing areas of challenges and limitations that would restrict it from getting the maximum results from this M&A.
Synoptek’s phased approach showed the client how it could streamline its IT infrastructure to win more businesses together post M&A.
If the client implements all the recommendations as provided by Synoptek, it could reduce overall IT expenses by 25%.
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