M&A Technology Due Diligence
Quick Navigation: Overview • Challenges • Typical Engagement • Our Approach • Client Profile
Service Overview
Technology due diligence for life sciences M&A requires systematic assessment of system architectures, operational dependencies, and integration complexity to identify hidden technical debt and quantify post-merger harmonization costs. We provide independent evaluation of technology assets, data integrity risks, and system integration requirements that inform transaction decisions and post-acquisition planning.
Common Challenges
Organizations struggle with technology assessments that focus on feature inventories rather than operational reality, integration cost estimates that miss critical workflow dependencies, and post-merger discoveries of undocumented system interdependencies that derail integration timelines. Specific situations requiring strategic technology due diligence include:
Acquisition target evaluation where technology infrastructure must be assessed for compatibility with acquirer systems, identifying integration complexity and post-merger operational risks before transaction completion. Divestiture preparation where business units must demonstrate technology independence and document system separation requirements for potential buyers.
Platform consolidation planning where multiple acquired entities need unified technology architecture, requiring assessment of competing systems, data migration complexity, and operational harmonization requirements. Legacy system risk assessment where aging technology infrastructure creates business continuity risks that affect company valuation and integration planning.
Regulatory compliance evaluation where acquired companies must demonstrate GxP, ISO, and other regulatory compliance status across technology systems, with clear documentation of validation status and ongoing compliance obligations. Data architecture analysis where critical business data is distributed across multiple systems with complex integration dependencies that affect operational continuity.
Vendor relationship assessment where acquired technology depends on third-party contracts, support relationships, and licensing agreements that create ongoing operational and financial obligations. Scalability and modernization requirements where acquired technology must support combined entity growth plans and strategic technology direction.
Most technology due diligence failures occur because assessments focus on system capabilities rather than operational integration complexity and post-merger harmonization requirements.
Recent Engagements
- Private equity client evaluating biotech acquisition where manufacturing execution systems required integration with existing quality management platforms across multiple sites
- Pharmaceutical company assessing CRO acquisition target, analyzing clinical data management system compatibility and regulatory compliance transfer requirements
- Technology vendor conducting competitive intelligence on acquisition targets, evaluating system architecture and client integration complexity
Typical Engagement
Duration: 4-8 weeks for comprehensive assessment, expedited 2-week evaluations for time-sensitive transactions
Deliverables: Technology inventory, integration complexity analysis, post-merger cost estimates, risk assessment, regulatory compliance status, vendor dependency evaluation
Client involvement: Executive stakeholder interviews, IT system access, financial data review, regulatory documentation analysis
Engagement model: Project-based for specific transactions, retainer-based for ongoing acquisition pipeline support
Our Due Diligence Approach
1. Operational Reality Assessment We document how technology actually supports business operations rather than just cataloging system features, identifying critical dependencies that affect post-merger integration planning.
2. Integration Complexity Analysis We map data flows and system interdependencies to quantify integration effort and identify potential single points of failure that could disrupt combined operations.
3. Regulatory Compliance Evaluation We assess validation status, audit readiness, and ongoing compliance obligations across all technology systems, identifying regulatory risks that affect transaction value.
4. Cost and Timeline Modeling We provide realistic estimates for post-merger system integration, data migration, and technology harmonization based on documented operational requirements and technical constraints.
5. Risk Prioritization Framework We identify highest-risk integration areas and recommend mitigation strategies that protect business continuity during post-merger technology transitions.
Integration Points
Technology due diligence connects with post-acquisition integration planning, requiring coordination with legal, financial, and operational due diligence teams to ensure technology findings inform broader transaction decisions and integration timelines.
System implementation and change management services provide natural follow-on support for executing post-merger integration plans, while ongoing compliance services ensure regulatory obligations are maintained during technology transitions.
Client Profile
Private equity firms, strategic acquirers, and companies preparing for sale who need independent assessment of technology assets, integration complexity, and post-merger operational requirements. Particularly valuable for life sciences transactions where regulatory compliance and system integration complexity significantly affect deal value and execution risk.
Ready to discuss your M&A technology assessment needs? Contact us to explore how systematic due diligence can inform transaction decisions and integration planning.
Connect with Kevin Shea on LinkedIn for ongoing insights on life sciences technology and compliance.