Analysis of impacts for the subject of information technology due diligence in mergers and acquisitions.

Abstract

This thesis explains the contribution of the Principal Agent Theory, Transaction Cost Theory and Theory of Incomplete Contract for the design of Information Technology (IT) due diligence in mergers and acquisitions (M&A) to support acquisition decision effectively from buyer`s perspective. Effectively, means a framework with substantial contribution for evaluation of seller`s information technology form buyer`s perspective before acquisition contract closing.

Study Design/Methodology – A precise state of current literature is given and research objectives and questions have been derived. The study of this thesis applies a research design with selection of the experts (n=11). The selection followed the criteria of significant experience in evaluation of IT as M&A consultants or in a executive role as Chief Information Officer (CIO) with profound IT integration experience. The expert interview results have been validated by the respondents.

Findings - The results of this research, provides a precise framework for the evaluation of IT and has a significant function for the buyer in M&A. This thesis contributes to the rare theoretical founded literature for the subject of IT DD in M&A.