Technology Strategy for the Mergers & Acquisitions Industry

  M&A transactions are a prime target for cybercriminals. While executives might think of cyber threats as planned attacks, hackers become active as soon as a deal is announced, probing for weaknesses. The period from announcement to integration creates heightened risk due to: Increased network activity: Employees from both companies ramp up activity, potentially exposing vulnerabilities. Sophisticated attacks: Hackers use advanced techniques like deepfakes to steal confidential information like intellectual property. Ransomware and extortion: Criminals may lock down systems with ransomware or exploit resources for illegal activities. Undocumented backdoors: Unpatched systems, legacy devices, or forgotten web portals can provide easy access points. Supply chain vulnerabilities: Tens of thousands of system interfaces create opportunities for attackers. Cybersecurity Due Diligence is Crucial For a successful M&A, both buyer and seller need thorough cybersecurity due

AI is at the forefront of most organizations strategy these days as it offers efficiency, high ROI, and it automates a majority of tasks in any company. One area in which it is a key asset is within the Mergers & Acquisitions space as it enables private equity and corporate players a plethora of options the assist the overall process. The following is an overview of how Generative AI can impact the M&A industry: Deal Identification Finely tuned AI algorithms can parse huge tracts of raw data and disseminate the best possible investments targets with quantifiable accuracy Combining multiple methodologies into a focused AI engine allows for the best of disparate approaches Streamlining Due Diligence Automation of data points, quantitative analysis, and human qualitative input make the process more efficient Machine Learning (ML) allows for aggregation of compliance, ESG, and regulatory risks to be addressed in a centralized and tracked capacity Smoothing Post-deal Integration/Sep

Technology Risk Management Primer for Portfolio Companies ( Part 1) Private equity and venture capital firms often face the threat of risk within  their portfolio companies, but are not always certain of their portfolio firm’s  competency in this area. Risk Management within Information Technology is  especially critical as it affects all operations as well as the eventual valuation  of the portfolio investment. CSC, Inc. specializes in helping investment firms  make the best technology decisions for their portfolio company’s technology  needs. This article serves as a primer for PE & VC firms who must ensure that their  investments are secure and may need to proactively engage the IT  management of their portfolio company. This primer can act as a template  for those IT managers that are tasked with developing an IT risk  management plan and who need guidelines for the process. It will also  provide examples of how to implement each step and a validation structure  for the i

Tech Venture Capital firms are tasked with sourcing the best companies with the most competitive technologies; however, they face the challenge of confirming the viability of their technology investment. VCs need to focus on verification of the target company’s proprietary platform as well as its infrastructure to ensure success. A good overview for understanding the technical due diligence needs is covering both Software / Hardware appraisal of all proprietary technologies is provided: Software code and language review including Web 2.0 platforms Scalability & compatibility assessment Competitive landscaping in direct sector Identification of risks and potential costs within target firm to reduce post-closing surprise expenses Existing technology infrastructure and operations evaluation to determine “IT health” of business-technology alignment Overall, it is critical to remember that the underlying infrastructure a firm uses to implement its key strategy will define how successful

Let's face the obvious. VCs plain love SaaS! What's not to like? SaaS (Software as a Service) architecture has gained tremendous momentum in the software world as it is the evolution of the ASP model allowing a software delivery without the need for any local data or software installation. Any browser with a robust Internet connection is able to access the software and the clients are billed via a subscription model, hence the service part. No ownership, no installation, no maintenance. I recently vetted a SaaS company for a VC client of mine and the SaaS model & revenue model made an extremely compelling business case. For VCs looking to invest in companies with a scalable business model this is an ideal revenue structure as it generally involves a fixed cost of initial development and infrastructure then they can scale up for countless clients who also subscribe to their software. This is great but there is more to it as the architecture for SaaS comes in two bas

No one who has ever worked in a corporate environment, much less been to business school, has ever avoided dealing with the infamous SWOT Analysis. SWOTs are meant to summarize the strategic positioning of a company and explain where they are and what steps they should take to be more effectual. In actuality, they are a very effective high-level tool for examining any company. I incorporated the SWOT technique into my own surveys of companies and created the T-SWOT or Technical SWOT analysis. The idea here is to easily and effectively explain to my VC clients what are the Technology-based positioning a company has. Each SWOT axis can be converted to technology standards and examines the tech functions of a company in a granular fashion. SWOT in an IT Context: Strengths - technical strengths in platform, infrastructure and management Weaknesses - who a firms software design and platform may weaken them and what they should do Opportunities - in the technology field