"Where Information Technology Is Purely Business & Engineering"
Professor Rino Nori's Fairfield University School of Engineering graduate school home page
IT DUE DILIGENCE REVIEW (Internal Business Application Systems & Infrastructure, Software Products):
The Nori & Associates Information Technology (IT) reviews are brief but intense involvement of our principals on behalf of Private Equity, Investment Banks, Commercial Lending, Venture Capital, Asset Management and Accounting firms involved in Due Diligence investigations re: business combinations, transactions and lending. We recognize the urgency and confidentiality of these matters, and based upon the scope of work render a draft report within three to seven calendar days. We identify the business risks associated with the target company's IT systems, organization, staffing, key projects, capital expenditures, scalability, flexibility, maintainability, security. Work scope can be adjusted as required and can include "carve out" considerations as well as "integration" considerations.
In addition to evaluating a target company's IT environment portfolio and infrastructure, we can evaluate the software engineering component of a target company's product. This is of value to Angel investors and others looking for an expert opinion on the technology, quality and systems development progress of a software product. Our knowledge of other engineering disciplines allows us to fully understand the impact and integration of the software component with respect to the product's other components (mechanical, electrical and optical).
Due Diligence Key Benefits
Our IT Due Diligence Reviews help quantify transactional risk and better estimate post-merger operational and financial exposure. The reviews can help a lender better appreciate his client's business environment and the associated level of lending risk. Our reviews can help a commercial banker or investment bank provide some necessary guidance to a client company. Specific IT related risks can be identified, assessed and estimated as to their impact upon the business. Our work may result in any of the following benefits:
Due Diligence Approach
The Nori & Associates IT Due Diligence review can be conducted in two iterations, an initial high spot review at the beginning of the overall due diligence process, and later, if the deal conditions warrant, a more detailed due diligence review.
In performing IT Due Diligence, we first fine tune our scope of work with the client and assess any particular client concerns or questions. Secondly, based upon the scope of our review, we proceed by requesting the target for the following types of data:
Based upon the data available, at the data room or forwarded to our attention, we identify potential concerns and coupled with the client's requirements proceed on site to complete our review and identify the potential risks. The on site work consists of select interviews, review of on site available data, and also includes spot testing of the submitted data. Overall usability, satisfaction, reliability and maintainability of the systems is determined. Additionally, an assessment is made of major future enhancements and their true need to support the business. The review findings are analyzed, contrasted to the contemporary industry norms and to the business growth plans, and conclusions are developed. A summary report is prepared identifying the major risks and concerns, and the detailed findings are provided as an attachment.
The above approach is tailored to fit the size of the target and the assigned scope of work. For smaller targets, or small commercial loans, many of the IT Due Diligence primary objectives can be achieved via streamlining the scope of work. The findings of an IT Due Diligence review may not always affect the outcome of a transaction, however they will provide the added input with which our client can make a better informed business decision.
Nori & Associates performs this work on an hourly or fixed fee basis, and we are open to sharing risk. Our background is with the major firms, however our fees are a fraction of those. All IT Due Diligence work is performed on a strictly private & confidential basis.