Why Private Equity Firms in the UK Rely on Expert IT Due Diligence for Mergers and Acquisitions Success
- Richard Keenlyside
- 4 hours ago
- 4 min read
TL;DR
In the fast-paced private equity (PE) landscape, the role of an IT due diligence consultant is crucial. With complex digital ecosystems and tight timelines, UK PE firms need expert insights to de-risk deals, ensure technology scalability, and safeguard post-acquisition value creation. Richard Keenlyside explains why CIO-led advisory is now a strategic asset for M&A success.
Introduction: Why IT Due Diligence is a PE Game-Changer in the UK
As deal volumes continue to rise across the UK and Europe, private equity firms are under increasing pressure to make faster, smarter investment decisions. But in today’s digitally dependent world, traditional financial and legal due diligence is no longer enough.
Enter the PE IT due diligence consultant.
Technology now underpins everything—from customer experience and logistics to compliance and cybersecurity. And when deals fail, it’s often due to hidden IT risks, outdated infrastructure, or underestimated integration costs.
Richard Keenlyside, a seasoned Global CIO and Private Equity IT advisor, shares how robust IT due diligence can unlock value, mitigate risk, and accelerate synergy realisation during M&A activity.
What Does a PE IT Due Diligence Consultant Do?
An IT due diligence consultant provides a detailed analysis of the target company’s technology landscape before acquisition. The goal? To highlight digital risks, integration challenges, scalability issues, and opportunities for cost optimisation.
Key deliverables include:
Assessment of IT infrastructure, systems and software (ERP, CRM, cloud platforms)
Cybersecurity maturity and threat posture evaluation
Scalability analysis for future growth or carve-outs
Post-acquisition transformation roadmaps
Cost-to-transition modelling (TSA, SaaS migration, outsourcing)
Richard Keenlyside brings deep industry experience across retail, manufacturing, logistics, and regulated industries—making his insights invaluable to PE-backed deals.
Why UK Private Equity Firms Trust CIO-Led Due Diligence
According to Bain & Company and PwC, over 50% of PE-backed deals face post-deal technology challenges. The costs of underestimating legacy technical debt, integration complexity or regulatory gaps are high.
That’s where CIO-led due diligence stands out.
As a former IT Director for a national retail chain and current Global CIO for a multinational manufacturer, Richard has led over 15 global M&A projects. He provides not just analysis—but strategic foresight.
His recent advisory for carve-out readiness and ERP transition in the automotive and retail sectors has helped PE clients in the UK avoid seven-figure risks and reduce transition periods by up to 40%.
Use Case – Supporting a £600M Global Carve-Out
A recent project with a UK-based private equity firm involved a global carve-out from a German automotive technology provider. Richard led a technology separation readiness assessment, focusing on:
Evaluating legacy SAP ECC 6.0 vs modern ERP options (S/4HANA, Infor CloudSuite, NetSuite)
Designing an independent infrastructure model
Building a separation TSA plan for 13 countries
Crafting a cybersecurity uplift programme post-acquisition
The result: a clear, investor-grade IT investment options paper to support deal structuring and capital planning.
Top Risks a PE IT Due Diligence Consultant Helps Uncover
Legacy Tech Debt – Systems no longer supported or scalable
Cybersecurity Gaps – Lack of SOCs, poor access controls, or unpatched systems
Vendor Lock-In – Hidden costs in licensing and support
Lack of Integration Readiness – Fragmented systems across business units
Data Governance Weaknesses – Poor reporting, regulatory risk (GDPR, ISO 27001)
Richard ensures all these are clearly documented with remediation timelines, cost models and impact assessments.
Tools and Frameworks Used in M&A IT Due Diligence
Richard uses a structured methodology including:
TOGAF enterprise architecture for technology mapping
Six Sigma and Agile for process and risk optimisation
ITIL & COBIT for service management maturity
Data Lake and BI assessments (Power BI, Tableau, etc.)
ERP & WMS benchmarks (SAP, Oracle Fusion, Infor, NetSuite, D365)
These frameworks ensure consistency and investor-grade quality in every output.
Why Choose Richard Keenlyside as Your UK IT Due Diligence Consultant
With over 34 years of experience and an extensive background in PE advisory, digital strategy, transformation and IT enablement, Richard offers:
✅ A proven track record across private equity, retail, finance, and manufacturing
✅ Experience in £100M+ carve-outs and ERP separation planning
✅ Strategic foresight backed by operational delivery
✅ Board-level advisory expertise
✅ Global team leadership and execution in 13+ countries
Clients benefit from CIO-level insight, fast turnaround, and investor-aligned reporting tailored for deal-makers.
FAQs
What is IT due diligence in private equity?
It is the process of evaluating the target company’s technology infrastructure, cybersecurity, systems and IT operations to identify risks and opportunities before an acquisition.
How long does IT due diligence take in the UK?
Depending on deal size, the process typically takes 2 to 4 weeks, though rapid assessments can be delivered in as little as 7 days for high-priority transactions.
Is it only relevant for large acquisitions?
No. Even small to mid-market deals benefit significantly. Tech risks are often more severe in SMEs due to underinvestment or lack of governance.
What’s the difference between technical and IT due diligence?
Technical due diligence focuses more on the product or service offering (e.g., SaaS platform codebase), whereas IT due diligence covers infrastructure, systems, cybersecurity, and operational capability.
Closing Thoughts
In today’s high-stakes private equity landscape, technology is both a driver of value and a source of hidden risk. Investing without IT due diligence is like flying blind.
With Richard Keenlyside’s decades of transformation experience and hands-on M&A advisory across sectors, UK firms can de-risk their deals and enhance ROI with confidence.
Richard Keenlyside is a Global CIO, PE&MA Advisor, Endava TAC and a former IT Director for J Sainsbury’s PLC. Call me on +44(0) 1642 040 268 or email richard@rjk.info.
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