Search
Close this search box.
Digital IT Due Diligence image

BUY SIDE | IT Due Diligence Report Readies PE Firm for New Acquisition of Food Equipment Service Provider 

Print Friendly and PDF

Client Profile & Challenge

Our client is a private equity investment firm focused on growth capital investments specializing in buyouts in middle-market businesses.

Challenge:

Our client had signed a letter of intent (LOI) and was interested in acquiring a Canadian manufacturer of hygiene solutions (the “Target”) and folding them into a previous acquisition (another manufacturer of household goods). The Target presented growth opportunities through synergies with existing portfolio companies, the acceleration of a US presence, opportunities for operational enhancements, and new product development.

Prior to completing the acquisition, our client required due diligence for further insight into the current state of the Target’s current technical and business process environments as well as guidance for future improvements. 

Solution Overview

Through stakeholder interviews and a review of the Target’s documentation, the Messina Group team conducted a thorough assessment of the Target’s IT and business structure, reviewing their processes, organization, data, governance, strategy & culture, technology, and cybersecurity. 

Through our cybersecurity assessment, we identified that the Target had raised immediate red flags and had missed significant opportunities for value creation. Their IT function was almost entirely outsourced to a one-person MSP, leading to a lack of IT strategy, modernized tech stack, integrations, and cybersecurity. 

Additionally, despite a strong employee culture, business functions were largely manual, ad hoc, and reliant on the tribal knowledge of tenured employees within the organization.

Messina Group’s experts used these findings to deliver a prioritized value creation roadmap focused on infrastructure enhancements, integrations, and business function enhancements. 

Solutions:

IT Due Diligence, IT Strategy, Cybersecurity Assessment, M&A Advisory

“AFTER” BUSINESS VALUE CREATION

Our client was able to make this major add-on acquisition with confidence they would not encounter any unexpected IT-related risks. Through the remediation of hiring a qualified MSP, the red flags were quickly remediated and did not halt the deal. Additionally, based on our deep experience and expertise, Messina Group provided a prioritized, strategic roadmap of IT initiatives to ensure value creation for our client post-acquisition.