March 21, 2023

Shawn Flynn: The Importance of IT in the Context of M&A

Shawn Flynn: The Importance of IT in the Context of M&A

In this episode, Sarah Tenisi speaks with Shawn Flynn, a Principal at a mid-market investment bank among several specialties, focusing on Mergers & Acquisitions of middle-market companies, with revenue between $10-$250 million.

Shawn kicked off his career by founding, scaling, and successfully scaling a company in Beijing, China. He is also host of The Silicon Valley Podcast where he speaks to founders on a variety of topics such as building a unicorn company, raising funding, and technology trends.

Listen in as Shawn gives his thoughts on IT due diligence for M&A activities. He breaks down how different parties consider IT and compliance, from investment bankers to C-suite executives.

Reminding us that “time kills all deals”, Shawn speaks on preventing or at least minimizing the risks that can stop a purchase from pushing through, such as ransom attacks, unexpected economic downturns, and even deal fatigue amid the due diligence process.

Finally, Shawn and Sarah discuss what it will take to accomplish the monumental task of standardizing IT due diligence.

What You’ll Learn in This Episode:

●      [01:53] Defining “IT due diligence”

●      [05:37] Whether investment bankers care about IT and compliance

●      [10:48] How Shawn got into the M&A space

●      [15:29] How CEOs consider IT due diligence

●      [21:45] Key inflection points in M&A activities

●      [26:03] What to do if the company was affected by phishing

●      [33:18] Optimizing the integration plan

●      [36:30] What it takes to standardize IT due diligence

Key quotes:

●      “It can be tied into the milestones of the company for key inflection points.”

●      “Time kills all deals.”

●      “You should be running your company as if you’re going to sell it any day.”