ABSTRACT
IT is frequently ignored in M&A, which is a little surprising given that it is integral to the running and efficiency of all companies. The usual concern is how best to integrate information systems. While the cost and speed of integration are very important, an acquisition is a prime opportunity to make IT a strategic tool, if it is not one already. IT due diligence can take place on three levels. At the audit level, a would-be buyer is concerned with checking that the system is secure, that it works and that it will continue to be secure and work after the deal is done. At the management level, due diligence seeks to unearth some of the cultural issues that may have to be tackled post-acquisition to improve short-term business performance. The strategic level investigation starts with the recognition that IT is a major component of competitive advantage.
