With the acquisition of Digirad by TTG Imaging Solutions now officially announced, I wanted to take a moment to share some insight into one of the more complex – and often overlooked – parts of the M&A process: IT due diligence.
For the past several months, I’ve been working behind the scenes as part of Digirad’s due diligence team, helping assess and map the technology landscape that would come into play post-acquisition. IT is often seen as a back-end detail in these deals, but I can tell you from experience: when it’s done right, IT due diligence sets the tone for a smooth integration and long-term operational success.
Here’s how we approached it – and why it matters.
Start with the Stack: ERP, OMS, CRM, and Integration Points
At the core of any diligence process is understanding how the business operates – and how technology supports it. That means looking at the ERP (Enterprise Resource Planning), OMS (Order Management System), and CRM (Customer Relationship Management) systems in place.
But it’s not just about what tools are used – it’s about how they connect.
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Are the CRM and ERP talking to each other, or are teams copying data back and forth manually?
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Does the OMS integrate with the billing platform, or is invoicing happening in silos?
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Are these systems cloud-hosted, or are we looking at a data center migration as part of the deal?
We dig into custom APIs, third-party tools, homegrown solutions, and any brittle integrations that could become a liability when platforms start merging. Even more importantly, we look for overlap – the places where systems are redundant and could be consolidated post-close.
In this case, Digirad had a more modern and integrated technology stack than what we saw at TTG. That opened the door to not just blending teams, but potentially elevating the entire IT posture across the combined entity.
Operational Modeling: What Happens Post-Close?
A big part of diligence is modeling the future state – not just taking inventory.
We ask questions like:
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What systems can be merged, retired, or extended?
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Where are the best opportunities to consolidate vendors and reduce cost?
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What compliance or security frameworks need to be maintained or implemented?
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What kind of headcount or skills gaps are going to be exposed by the integration?
To do that, we build out projections:
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Licensing footprints for shared tools (e.g., Microsoft 365, security platforms)
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Network architecture maps to identify segmentation or VPN redesigns
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File system and data structure overlaps
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Email domain coexistence and migration strategies
We also look at soft costs – retraining, policy alignment, documentation gaps – because those friction points often determine how successful an integration really is.
General IT Health Check: What’s Under the Hood?
Beyond systems and software, we assess the general IT health of the organization:
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Are backups configured properly? Are they tested?
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Is there a ticketing system? Is it used consistently?
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What’s the patching cadence? Are systems up to date?
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How is identity managed? Is there MFA? Role-based access?
In this case, TTG was operating with minimal internal IT – mostly vendor-managed – and there was a lot of technical debt sitting below the surface. That’s not uncommon. What matters is spotting it early, planning for it, and making sure there’s a strategy in place to bring systems and people up to speed quickly.
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People, Skills, and Structure: Assessing the Human Side of IT
Technology doesn’t run itself – and in any M&A scenario, it’s just as important to assess the people and processes behind the systems as it is to evaluate the infrastructure.
As part of our due diligence, we looked closely at:
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Organizational charts and reporting structures
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Skill sets and certifications within the IT team
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Third-party vendor relationships and reliance levels
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Day-to-day responsibilities vs. actual job titles
We’re looking for areas where teams overlap, where gaps exist, and where we might create synergies by combining efforts or introducing new tools or processes. It’s not just about headcount – it’s about functionality and accountability.
In the case of TTG, there was a lean internal IT team, mostly managing outsourced vendor relationships. At Digirad, we’d built a fully hands-on, security-forward team. That contrast created a clear opportunity: use Digirad’s internal IT maturity to level up the combined organization, rather than duplicating vendor-heavy strategies.
When done thoughtfully, staffing assessments can:
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Avoid painful redundancies
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Preserve institutional knowledge
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Accelerate onboarding and cross-training
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Help frame a realistic integration timeline
At the end of the day, systems matter – but people carry the knowledge, culture, and execution power that make or break a successful integration.
Why This Work Matters
IT due diligence isn’t just about risk mitigation – it’s about planning for success.
Done well, it can:
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Set the roadmap for a unified, future-facing infrastructure
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Eliminate duplicate spend and reduce technical complexity
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Lay the groundwork for scalable systems and compliance maturity
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Help retain key talent and avoid “surprises” post-close
And perhaps most importantly, it shows that IT deserves a seat at the table from day one – not just as support, but as a strategic driver of the merger’s success.
This was my first full-scale M&A from the VP seat, and it was an intense, rewarding, and incredibly educational experience. I’ll be sharing more soon as we dive into integration efforts and begin turning projections into progress.
If you’re an IT leader heading into an M&A, my advice is simple: ask the questions early, document everything, and plan for the rebuild – not just the handoff.
– Vince