5 Questions to Assess IT's Impact on Valuation
The following 5 questions are designed to help you determine major red flags in IT’s impact on valuation. Though these questions won’t give you the compressive numbers to assess actual value impact, they can be predictive of a situation where further analysis is warranted.
Here’s a snapshot of a Q&A you can expect from this assessment:
Q : Has there been any major cybersecurity events that have risen to the board (outages, breaches, ransomware, lost data, etc.)?
A: PE firms' board members are usually the last to know about events that happen in IT. Information moving up the chain of command is generally controlled, but it's pervasive in this industry. There may be events that haven't been communicated to the PE firm or events IT staff are simply unaware of. However, events serious enough to make it all the way up to the board level are cause for concern and usually mean more expertise and/or remediation are needed to prevent such events from happening again in the future.
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