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Case Study

M&A IT Due Diligence and ERP Assessment

Pre-acquisition IT evaluation for a marine products maker

By: eSolia Inc.

A Japanese marine products maker was acquiring a subsidiary in the United States. eSolia provided IT due diligence consulting — evaluating the target's ERP system, IT infrastructure, and business processes to give the acquirer a clear picture before closing.

Project Parameters

ParameterValue
TeamPM x 1, Consultant x 1, Assistant x 1, Functional Key User x 3
Users10
Duration2 weeks
Effort4 person-weeks
SitesTokyo, Florida (USA)

What Needed Solving

The acquirer lacked detailed information on the target's network and servers. They needed a hardware, software, and data inventory. They wanted to understand whether the existing ERP could continue to serve the business, and wanted clarity on how the ERP could help improve processes going forward. The relationship between business processes and IT systems was not well documented. They needed general recommendations on how to improve.

What We Did

We ran a consulting discovery process — reviewing and inventorying infrastructure, the ERP system, and business processes across both the Tokyo headquarters and the Florida operation. We produced a detailed feedback report covering all basic aspects of the ERP and LAN infrastructure, with concrete recommendations for improvement.

What the Client Gained

  • Problems beyond those initially flagged by the client were discovered during the assessment
  • Complete clarity on the current IT infrastructure in the prospective subsidiary
  • Solid understanding of the ERP system's capabilities and limitations
  • Full transparency of current business processes, enabling the parent company to plan integration
  • A clear path for operational improvement post-acquisition

Technology Involved

  • Microsoft Solomon ERP
  • Crystal Reports
  • FRx Financials
  • DAC Payroll
  • Dell Servers and Workstations

If you're planning an acquisition involving a Japanese entity, our IT Due Diligence service covers the full scope of pre-close IT evaluation.

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