The Hidden Tech Debt Tax: Mitigating ERP & Document Risk During PE Due Diligence
Learn how Private Equity firms can move beyond traditional IT audits to Digital Due Diligence, identifying legacy technical debt, mitigating ERP risk, and automating document workflows to protect EBITDA and de-risk exits.
The Hidden Tech Debt Tax: Mitigating ERP & Document Risk During PE Due Diligence
“Trajectory is a partner in our business growth. They’ve seen us through every significant phase of our technology evolution since 2022, adding value and protecting our interests every month.”
Sylvia Cole | CFO | OnScent
“Trajectory is a partner in our business growth. They’ve seen us through every significant phase of our technology evolution since 2022, adding value and protecting our interests every month.”
Sylvia Cole | CFO | OnScent
About This Insight
The margin for error in Private Equity acquisitions is razor-thin. While financial and legal due diligence remain critical, technical debt, the cumulative cost of legacy systems, fragmented data, and manual workarounds, acts as a silent tax on EBITDA and delays the 100-day plan.
Using OnScent’s technology transformation as a primary case study, this white paper demonstrates how combining Trajectory’s strategic advisory with Initus Technologies’ specialized automation capabilities (InitusIDP, InitusIO, InitusDecoder) allows deal teams to identify hidden liabilities pre-close.
Key takeaways include:
• Quantifying the Tech Debt Tax: Moving from standard IT audits to deep-tissue code and system scans (Code Integrity, Upgrade Paths, and Breaking Points).
• Eliminating the “Analog Anchor”: Deploying Intelligent Document Processing (InitusIDP) to convert unstructured documents (PDFs, invoices, vendor contracts) into searchable digital assets, removing human middleware costs.
• Executing the 100-Day Sprint: Rapidly aligning technology post-close via future-state blueprinting, seamless system integration, and automated data migration (InitusMigrate).
• Investment Committee Framework: Essential digital maturity questions to ask pre-close regarding human middleware ratios, AI-readiness, and API maturity.
About Trajectory
Download This Insight
About This Insight
The margin for error in Private Equity acquisitions is razor-thin. While financial and legal due diligence remain critical, technical debt, the cumulative cost of legacy systems, fragmented data, and manual workarounds, acts as a silent tax on EBITDA and delays the 100-day plan.
Using OnScent’s technology transformation as a primary case study, this white paper demonstrates how combining Trajectory’s strategic advisory with Initus Technologies’ specialized automation capabilities (InitusIDP, InitusIO, InitusDecoder) allows deal teams to identify hidden liabilities pre-close.
Key takeaways include:
• Quantifying the Tech Debt Tax: Moving from standard IT audits to deep-tissue code and system scans (Code Integrity, Upgrade Paths, and Breaking Points).
• Eliminating the “Analog Anchor”: Deploying Intelligent Document Processing (InitusIDP) to convert unstructured documents (PDFs, invoices, vendor contracts) into searchable digital assets, removing human middleware costs.
• Executing the 100-Day Sprint: Rapidly aligning technology post-close via future-state blueprinting, seamless system integration, and automated data migration (InitusMigrate).
• Investment Committee Framework: Essential digital maturity questions to ask pre-close regarding human middleware ratios, AI-readiness, and API maturity.
About Trajectory
Download This Insight
Trajectory Group
CEO & Managing Partner
Throughout his 18-year career at Trajectory, Alex’s role has ranged from managing teams and projects to running the professional services organization, and mentoring Trajectory’s growing number of Consultants. Currently, he leads the Trajectory Team and invests his time ensuring Private Equity avoids key technology risks during their transactions. Alex understands technology is simply the means for achieving business goals. He has guided Trajectory’s organization to form its own version of Operational Improvement, which combines industry and business acumen with highly effective technology implementation capabilities. Prior to joining Trajectory Group, Alex spent 10 years in business consulting, systems advisory, and SAP implementations with IBM Global Services and Accenture.