M & A Support for IT
Swingtide offers services that help companies with organizational transitions. We provide program governance, financial oversight, and contractual assistance in the high-pressure circumstances of mergers, acquisitions, divestitures, spin-offs and other strategic organization level changes.
This offering includes the provision of the detailed, time-sensitive, and complex work necessary to complete contractual due diligence and all the technology business related integration or separation activities required to support these strategic business changes. Swingtide’s activities span analysis of technology contracts for usage and transfer rights, development of transition services agreements, integration and separation planning and the identification of the economic impact of transaction (e.g., unabsorbed overhead, separation fees, service realignment).
Many elements of the M&A Support offering are described in more detail in the Swingtide white paper Assisting Acquisitions and Divestitures through IT Cost Transparency.
Ideal for Companies
- Divesting or acquiring businesses
- With limited operational experience supporting acquisitions and divestitures
- Seeking full understanding (economic and operational) of a transaction impact
- Where the “Deal Team” is primarily driven by counsel or executive oversight groups that may overlook IT cost and operational implications of M&A activity
- Efficient and timely organizational transitions
- Mitigation of risk, minimization of cost, effective governance during the transition
- Understanding of the fully-loaded cost of a transaction to support better decisions and eliminate surprises
High Level Approach & Deliverables
- The approach varies by transaction but includes some elements of the following:
- Discovery to understand the current state
- Development of financial models to understand the impact of the change
- Review of third-party contracts (including outsourcing agreements) to identify necessary usage rights and understand costs
- Renegotiation or consolidation of third-party contracts to support the transaction
- Development of a transition plan and transition services agreement to support the transaction