PE AND M&A Industry

IT CHALLENGES IN
PE AND M&A

After an acquisition or investment, integrating IT systems to ensure seamless communication and collaboration can be complex. Disparate systems, incompatible software, and varying technological infrastructures can hinder operational efficiency.
Assessing the technology infrastructure and capabilities of target companies during due diligence is crucial for informed decision-making. Inaccurate assessments can lead to unexpected post-transaction expenses.
Implementing scalable cloud services that adapt to a firm's fluctuating data processing and storage needs ensures efficient portfolio management. This allows PE and M&A firms to seamlessly scale their IT infrastructure up or down based on current deal flows without significant upfront investments or delays, fostering agility and operational efficiency.

In 2023, financial organizations incurred average losses of approximately $5.9 million per cyber incident, a figure that underscores the sector's acute vulnerability to cybercrime (ptsecurity.com).
The increase in financial crime risks is a global concern, with 69% of executives expecting these risks to rise, driven primarily by cybersecurity and data breaches. In response, firms are prioritizing investments in technology and bolstering their cybersecurity budgets to combat this uptrend. (Kroll).
Portfolio companies are increasingly turning to digital transformation to drive their value-creation strategies. This often involves leveraging technologies like cloud computing, predictive analytics, and AI to optimize operations and enhance customer engagement (PwC).