The third leg of the stool: Know-how’s function in M&A

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The third leg of the stool: Know-how’s function in M&A



Why IT? My eye-opening function

The massive query hit me early: Why was I there? I lacked authorized or accounting experience. The reply got here after I was tasked with evaluating the goal’s technical structure — and translating dangers into monetary and enterprise liabilities.

As Principal Architect, this was acquainted floor. I reported again to the M&A management, and my insights proved not simply invaluable however important to negotiations. In some circumstances, they helped keep away from multimillion-dollar pitfalls. Over a number of offers, my suggestions formed outcomes, from worth changes to deal constructions.

This led me to develop a blueprint for technical due diligence, rooted within the Open Group Structure Framework (TOGAF). Centered on threat and price, it emphasised technical structure and information structure — recognizing technical debt and information high quality points. Again then, “technical debt” was obscure outdoors IT, and information as a core asset was even much less acknowledged.