Radix’ Technology Due Diligence Offers Security and Provides Scenarios for Companies Interested in Mergers and Acquisitions
Specialized in technology, Radix has a multidisciplinary team to serve customers from different industry sectors
Radix is offering a Technology Due Diligence service to companies interested in mergers and acquisitions. The service consists of analyzing aspects such as architecture, infrastructure, availability, scalability and performance, costs with technology, quality, information security, and documentation, assigning risk factors.
According to Flávio Niemeyer Guimarães, Radix US CEO, “The economic crisis caused by the Covid-19 pandemic caught the market off guard, generating a wave of uncertainty about the future. Technology can be combined with entrepreneurial strength and used as a tool to forecast scenarios and generate more confidence to potential investors or future partners. Due diligence cannot completely eliminate risks, but it does give an overview of the threats and opportunities found in the business in question.”
Commented Fabiana Matsas, Business Development at Radix’ Services Business Unit: “Due diligence is an important tool to guide decision making in negotiation and can be crucial for closing a deal. Furthermore, you learn much by evaluating other companies, as both negative points and risks are revealed, as well as good practices.”
To give an accurate diagnosis of the target company, Radix has a multidisciplinary team of consultants to manage all conditions raised by the client. Access to documents and systems, as well as individual interviews, support the evaluation and collection of information.
“At the end of the process, we produce a risk report, pointing out the opportunities for improvement, strengths, and risks of each evaluated aspect, as well as an action plan to eliminate or mitigate these threats, if the client wishes to move on with the investment in the new company,” explained Fabiana Matsas.
One Private Equity customer found that on at least three occasions, their investment decision was directly influenced by Radix's due diligence report. "We demonstrated that the estimated potential return had a high probability of not happening due to serious flaws in the technological structure of the target company", said Matsas.