Pre-Close IT-ODD vs. Post Close IT Assessment
How do Pre-Close IT-ODD and Post-Close IT Assessment advisory services differ?
In a transactional setting, the election to perform an IT-ODD-type assessment post-close is solely a matter of timing — the scope and purpose of the two activities are exactly the same. The same, comprehensive set of IT capabilities components must be assessed in the same manner, regardless of the timing relative to closing. In both cases, the acquiring entity must be the sponsor for the IT-ODD effort, regardless of how it is funded. A different description of the activity is warranted only because performing “due diligence” after the fact seems ill-timed. A greater difference exists between IT-ODD and a technical review of a company’s IT capabilities deployment to determine if standard, customary practices are utilized and if an appropriately configured platform exists, with the objective of identifying tactical suggestions for improvement and optimization.
Such a review is useful as an “IT tune-up” or diagnostic evaluation in order to determine if a more efficient functioning of a company’s IT capabilities is possible. However, such a detailed, focused review is unnecessary to ascertain if the IT capabilities act as an asset or liability in the transaction. Unfortunately, often times, these types of diagnostic evaluations are conducted by IT consultants as transactional IT-ODD efforts leaving the acquiring entity with an insufficient and incomplete perspective of the Target’s IT capabilities as a leveragable asset or encumbered liability requiring far more investment beyond a refinement of an infrastructure component or improved network security policy.
Our strategically-focused IT-ODD advisory services leverage our prior information technology and business transformation experience to provide a judgment-based perspective regarding strategies for how the Target can leverage its IT platform to enable effective business operations and growth.