DUE DILIGENCE

WHAT WE DO

RKON is more than just a typical advisor. Over the last 20+ years, our experts have performed hundreds of due diligence services for complex IT transactions. Our hands-on experience and dedication to remaining accountable throughout the entire process allow our clients to fully assess the risk of the transaction and execute advanced, profitable IT plans within their budget.

 

 

 

Investment Thesis Alignment

Our due diligence efforts go a step further than the norm because we align our process with your investment thesis, basing our observations of risks and opportunities on your goals and not a perfect version of the gold standard of IT.  In the mid-market, where the gold standard is usually inappropriate for the nature and scope of the businesses, this alignment can prevent cost overrun and resource challenges.

 

IT Budget Analysis

In our experience, it is rare that mid-market companies properly account for their entire IT spend.  Our due diligence experts dig deeper into available financial information to reconstruct an actual representation of the true IT spend. For this process, we not only use traditional benchmark research, but also real-world cost information gained through our experience.

 

Attention to the Entire IT Footprint

A typical organization spends approximately 40% of their annual IT budget on business applications, but the remaining 60% of the budget—the IT infrastructure—is often overlooked during diligence because it is not as visible to the organization as the business applications. Our diligence process gives equal attention to the IT infrastructure as it does to business applications to assure that a complete assessment of the entire IT organization is delivered.

Carve-out IT Diligence

While a standard diligence focuses primarily on the present, with a deep analysis of risks and current IT spend, our carveout diligence also looks heavily into the future. We look at all aspects of IT and develop a pragmatic approach and executable plan, complete with costs and timelines, to create an entirely new IT organization appropriate for future needs.

Cybersecurity Due Diligence

Whether you're on the buy side or sell side of an M&A transaction, cybersecurity assessments have become a critical piece of every diligence project. Without proper due diligence of a company’s cybersecurity controls during the M&A process, businesses can suffer from subsequent data breaches, loss of business revenues, and serious reputation damage.

 

We have helped countless firms identify digital risks, ensuring that they understand the target's vulnerabilities, the potential scope of damage that may occur, and the effectiveness of the target's current cyber defenses. Our cybersecurity due diligence provides an in-depth evaluation of these issues so you can take the right steps in securing the digital environment. 

Sell-Side Due Diligence

As a seller, you want to quickly expose and address risks prior to the start of a sale in order to avoid potential pitfalls and delays stemming from the buyer's due diligence. Sell-side due diligence is an extra assurance that makes sure you understand and can neutralize any problems before they are brought up by the buyer's due diligence.

 ROBUST AND CREDIBLE REPORTS

 

OUR DUE DILIGENCE APPROACH

 

DISCOVER OUR IMPACT

CASE STUDY:
Project Afterburn

When this regional leader  in B2B aftermarket automotive parts distribution sought to achieve add-on growth while also optimizing the platform for scale, we tailored our add-on strategy to institutionalize key processes and increase customer loyalty on underperforming add-ons with solid market reputations.

 

CHECK OUT OUR BLOG

 

READ OUR LATEST INSIGHTS

328 S. Jefferson, Suite 450

Chicago, IL 60661

©2019 by RKON Private Equity