FM Analysis

DILIGENCE

From small businesses to global corporations, IT is an intrinsic part of daily operations that evolves to new heights year after year, consistently finding itself at the epicentre of financial and business infrastructures.

A survey conducted by Ernst & Young earlier this year found that only 38% of corporate and 22% of private equity respondents put a significant emphasis on IT as part of their approach to M&A transactions. E&Y highlighted that although IT consistently emerges as a significant challenge to achieving transaction goals, its importance in delivering deal success is often learned too late.

An incident earlier this year that highlighted the risks of overlooking the importance of

stemmed from a major IT switchover that had failed to account for key changes in business processes.

To discuss IT Due Diligence further, we spoke to German Sukinnikov (KPMG, CIS) and Calum Stewart (Intuitus).

German Sukonnikov Director in Management Consulting KPMG Russia and the CIS

IT vetting

subsequently resulted in a service lapse and costly consequence for PricewaterhouseCoopers who in January were fined £1.4 million for signing off on a report that contained serious rule- breaking client money practices at JP Morgan Chase, the cause of which

German leads the CIO Advisory team that provides our clients with IT Due Diligence services as well as IT Strategy, Performance and Governance services.

KPMG is a Global network of professional firms providing Audit, Tax and Advisory services; operating in 152 countries with 145,000 people in member firms around the world. 3,700 professionals and 104

partners are working in 19 offices of KPMG in Russia, Ukraine, Kazakhstan and other CIS countries.

Calum Stewart Managing Director Intuitus

Calum Stewart founded Intuitus in 2002, since when the company has become established as the leading provider of expert IT and technology advice both to private equity clients and to companies backed by private equity.

Intuitus has advised in excess of 300 transactions ranging in value from £800,000 to £975 million, including buyer-led management buy-outs, buy-and-builds, carve-outs and public-to- privates, to sell-side engagements and traditional M&As.