Looking to increase the value of your firm? Develop an IT checklist.
Why? Because if you are thinking of buying or merging with a new Practice, due diligence of the IT systems/technology can help you understand what you are buying and what you will inherit when you take over a firm. Alternatively, if you are thinking of selling all or part of your firm, up-to-date and functioning IT systems are a key component to communicating the value and business potential your firm has to offer.
Using an expert maximises your profit potential
Gaining a professional understanding of what IT equipment, contracts, connections exist (or not) can make a big difference to the profit potential of a Practice during a 12-24 month period. And the best part? This process adds a huge amount of value to your firm.
Imagine you’re looking to buy a practice. The first question you’re likely to ask yourself is “why is the practice for sale?”. Often when practices are on the market, it’s because their IT systems are lagging. The owners have found out that they need to upgrade their systems or software to remain competitive or, the practice may be losing clients because the software they are using is slowing down their processes.
Is that the kind of Practice you want to own or buy? Not really. Here’s an essential IT due diligence checklist:
How old are the devices and infrastructure within your practice? IT devices and software are designed by manufacturers to last three to five years. Common issues caused by old equipment include limited support from manufacturers, equipment that is expensive to maintain, and increased security risks.
Consulting with an IT expert will let you know what is current, what is end of life, and also, what you would need to spend to get the systems your practice requires. Identifying equipment costs before they are likely to arise can help you retain value and create a realistic IT budget.
Create an audit of the IT equipment you own with the specifications itemised. This will come in handy if you need to value your practice. And if you’re buying into a practice, ensure the equipment has not been swapped out for older versions prior to purchase!
What kind of Internet connectivity is available at your practice? Some Telco Exchanges have no capacity for new connections. Whilst alternative connections can be available, the added cost may be prohibitive. Does the Practice have ‘business-grade’ cabling infrastructure? And does it work well? These can have a big effect on network speeds.
Is your Practice Management Software old or “end of life”? Are there support services available, and at what cost? Connectivity will impact greatly on your firm’s value.
3. Licensing and Contracts
Are the devices you use legally licensed? And do legally-binding contracts for Practice Management software, communication and cloud exist? And do they support early exit if you wish to sell?
These three points cover the basic IT information you need to consider. Please use this list as an aid to speak with your IT Provider. Or, contract itro. One of our engineers will be happy to help you get a better understanding of what you need to know about IT to increase your firm’s value, and before you buy or merge with a new practice.