Revving up: Gravitas helped a private equity firm ensure IT due-diligence for an auto-repair chain
Gravitas Consulting was approached by a private equity firm to assist in conducting due-diligence of an automotive repair chain's IT systems and infrastructure. The private equity firm was considering investing in the automotive repair chain, but wanted to ensure that the IT systems and infrastructure were reliable, secure, and efficient.
What problem were we asked to solve?
Gravitas Consulting was approached by a private equity firm to assist in conducting due-diligence of an automotive repair chain's IT systems and infrastructure. The private equity firm was considering investing in the automotive repair chain, but wanted to ensure that the IT systems and infrastructure were reliable, secure, and efficient. The client asked Gravitas to conduct the due-diligence of IT systems and infrastructure of the target firm.
Our approach
Gravitas Consulting's team of experts began the due-diligence process by conducting a comprehensive review of the automotive repair chain's IT systems and infrastructure. We conducted several interviews to go through asset registers, enterprise architecture landscape, key IT personnel, support procedures, disaster recovery protocols, and more. The intensive review phase involved analyzing the current hardware and software systems, reviewing data security protocols, examining network and server infrastructure, and assessing system capacity and scalability.
After the initial review, Gravitas Consulting identified several areas of concern, including outdated software systems, insufficient data backup protocols, and inadequate network infrastructure. More importantly, the target firm had no backfills for critical IT staff. To address these concerns, Gravitas Consulting recommended several solutions and provided a detailed implementation plan for the automotive repair chain.
Findings and recommendations
First, Gravitas Consulting recommended updating the automotive repair chain's software systems to the latest version. This would not only provide access to new features and functionalities, but also ensure that the systems are secure and up-to-date.
38% of deals fail due to issues with IT systems and infrastructure
Second, Gravitas Consulting recommended implementing a comprehensive data backup protocol to ensure that critical business information is not lost in the event of a system failure or cyber-attack. This included setting up regular backups and ensuring that the backups are stored securely offsite.
According to a survey by West Monroe Partners, 42% of respondents had encountered a major IT issue that resulted in a deal being delayed or canceled.
Third, Gravitas Consulting recommended upgrading the network infrastructure to improve system performance and increase capacity. This involved implementing a new server infrastructure and updating the network hardware.
A survey by PwC found that 69% of executives believe that cybersecurity risks are a top concern during IT due-diligence.
Outcomes
Gravitas Consulting worked closely with the private equity firm and the automotive repair chain to implement these recommendations. The implementation process was completed within the agreed timeline and budget, and the automotive repair chain's IT systems and infrastructure were significantly improved.
As a result of Gravitas Consulting's due-diligence and recommendations, the private equity firm was able to make an informed investment decision and acquire the automotive repair chain. The automotive repair chain has since seen improved system performance, increased efficiency, and better data security.
Key outcomes
80%
IT risk reduction
$300k
investment identified
4
weeks to complete