A hospital wouldn’t let a lawyer interpret MRI results.
A builder wouldn’t use blueprints drawn up by an accountant.
So why ask a lawyer or accountant to carry out IT due diligence?
Look, we’re sure your lawyers and accountants are great, and you definitely want them combing through the contracts and ledgers before your next acquisition. But the stakes are too high to expect them to give you deep visibility into software quality.
We’ve seen the horror stories up close. For instance, we recently did a complete risk assessment for a client to evaluate the maintainability of their software. We were alarmed to discover that the code base of their recent acquisition was badly out of date, with more than 40% dead code.
The good news: Now they know why the acquisition has had so many material downstream performance issues. The bad news: They didn’t call us in before the purchase.
We’ve isolated 5 key factors that Private Equity investors must pursue for IT due diligence — and we’re willing to share.