Getting ready for investment or to sell
A rocky due diligence strengthens the negotiating position of the buyer. It could even give them cold feet. Sellers need to get it right the first time around.
An entrepreneur selling a business might think a deal is nearly done when a prospective buyer signs a heads-of-terms, showing an indicative price. But this will be subject to due diligence; when the buyer has a detailed look under the bonnet, to validate that the business that they think they are buying is indeed that same business.
Software the company has developed, IT systems and data need to be protected from cyber attacks, adequately backed up and have redundancy, with no single point of failure e.g. the failure of a single server won’t cripple the business. Robust operating procedures will also be important e.g. control over personal devices used for business. Compliance with the EU’s General Data Protection Regulation will also be top of mind for buyers.
North IT can help guide a company through what an IT due diligence audit will look like so when it happens everything is in place. When doing buyer and seller side audits, we look at these areas:
- Quality Assurance Process
- Customer Service & Support
- Networking & Infrastructure
- Software Licensing
- GDPR & Data Protection
- Disaster Recover Processes
- Freelance & Home Working Processes
- Backup Recovery
- Penetration Testing
- Vulnerability assessments
Specifically, for a software company we can add additional services:
- Development Team Overview
- Software Development Tools
- Project Management Methodologies
- Continuous Integration
- Open Source Register (FOSS register)
We work with you and your staff to run through a mock due diligence project. Looking at the systems and processes in place we can advise on the areas that need improving so when you do get audited you are in the best position to negotiate.