ITx Café #12 – Assessment & Optimization of Digital Assets – RETEX
Digital assets are a key component of any investment case, as of due diligence and during project lifecycle to maximize value creation.
Knowledge of digital assets makes it possible to secure M&A transactions in the short term. In the longer term, it avoids unpleasant surprises generating lack of quality, additional costs and delays that negatively impact ROI and can also permanently damage the image of the company.
We share some RETEX based on missions carried out by our firm in complete confidentiality.
Carve-out
Can you remind us of the context and the objectives?
The Board of a Luxury/Retail group operating in France and abroad was planning the sale of a brand with more than 1,000 users. Confidentiality, in particular with regard to employees, was a top priority. Our support focused specifically on the IT aspect with the aim of building the roadmap and defining the target organization to optimize the sale, aka IT carve-out.
How did the mission go?
The mission took place over a period of two months. First, an audit was conducted including interviews and business & IT workshops. Then, we submitted the expected deliverables: IT/IS roadmap, organizational plan, contractual review, architecture review, strategic evaluation and costing – which allowed for rapid decision-making based on concrete elements.
Which skills have been used the most?
Architecture – Evaluation – Operating Model – Organization
LBO
Can you remind us of the context and the objectives?
In the context of the acquisition via LBO of a company offering digital services, we intervened from the due diligence phase at the request of the Executive Management. The objective was to define the operational strategy in order to secure the product roadmap while setting up a development power at very competitive costs. We still support the company today in managing their product development.
How did the mission go?
The mission was split into several phases: audit, transformation plan and then management of the transformation and implementation of the operational strategy. In technical jargon, the deliverables include Think, Build & Run components up to the delivery of the products, both for human resources, processes and technologies.
During the audit, we identified a set of risks related to the product roadmap:
- significant delays to deliver new features and
- lack of reliability of the data repository.
We have issued recommendations to structure the existing team and provide offshore development power. Thanks to the systemic approach to developments, infrastructure and cyber, they now benefit from solid pillars and we continue to support them on Data and AI topics.
Which skills have been used the most?
Audit – Architecture – Management – Organization – Development