• Skip to primary navigation
  • Skip to main content
  • Skip to primary sidebar
  • Skip to footer
Hartman Advisors Site Logo

Hartman Executive Advisors

Business & IT Strategy Consulting Firm

  • Business Strategy Consulting
  • IT Management Consulting
  • IT Strategy Consulting
  • Risk Management Consulting
  • Telehealth
  • About
    • Careers
    • Our Team
    • Testimonials
  • Services
    • Business Strategy Consulting
      • CIO Consulting Services
      • CISO Consulting Services
      • M&A Advisory
      • Telehealth Consulting Services
      • IT Coaching & Mentoring
      • Organizational Development
      • Process Engineering
    • Risk Management Consulting
      • Cyber Risk Advisory
      • Governance, Risk and Compliance
      • Incident Response Planning
      • IT Due Diligence
    • IT Management Consulting
      • Change Management
      • IT Portfolio Management
      • Vendor Selection & Management
    • IT Strategy Consulting
      • IT Strategy Assessment
      • Software Evaluation
      • Software Selection
      • Virtual Event Technology
  • Industries
    • Construction
    • Education
    • Financial
    • Government Contracting
    • Healthcare & Community Services
    • Manufacturing, Retail & Distribution
    • Nonprofit & Association
    • Real Estate
  • Resources
    • Blog
    • Case Studies
    • eBooks
    • Executive Technology Survey Results
    • Maryland CIO Roundtable
    • Speaking Engagements
  • Contact Us
(410) 587-0064 Request a Consultation
(410) 587-0064 Request a Consultation

How IT Strategy Increases Corporate Valuation

February 29, 2016 by Dave Hartman

Is technology adding to the value of your business, or decreasing it? That’s the question more and more CEOs and corporate valuation experts are asking today. For years, IT Due Diligence, as part of an M&A transaction or other business valuation, was simply an add-on to the accounting audit. But with IT playing a much more critical role in the operational efficiency and performance capacity of businesses today, the industry is taking note.

IT Strategy Boosts Internal Operations

According to Stan Mork, president of the Information Technology Alliance, “Including IT in the due diligence process not only protects your investment dollars, but optimizes investment performance post-transaction.” Technology systems have become more complex and more critical to successful daily operations of most companies. Whether they are planning to sell their business or not, CEOs are wise to consider how effective IT can add value to their business and how non-performing IT can destroy it.

Of course, building and maintaining an effective IT organization isn’t always easy, especially if it has been neglected for years. Many CEOs question whether it’s worth putting their company through the pain of change that IT sometimes requires.

IT Strategy Leads To Better Product Development

Larry Butler, CEO of Butler Capital, completed the successful sale of his life’s passion to a venture capital firm a few years ago. The economic downturn had been particularly hard on the financing industry and on Butler Capital, but their strong customer relationship base, a talented workforce and solid financials meant that his company still reflected significant value in the marketplace. Butler had recently completed an enterprise software upgrade and transition. Given the rapid change that was happening within the industry and Butler Capital, the upgrade had proven challenging to both employees and management. When asked if it was worth the pain and disruption to his company, Larry said, “Had we not implemented that new professional software system, we never could have found a successful buyer.”

And there it is — the only answer that really matters when it comes to whether the pain is worth it. CEOs endure the pain because it helps improve the capital valuation of the company. While efficient systems, workflows and processes may create competitive advantage and improve the bottom line, the lack of professional systems can put your company at a competitive disadvantage and can potentially devalue it. Effective data analysis systems, efficient customer acquisitions solutions and automation of core business processes can even dramatically increase the value of a company.

Speak With Hartman Executive Advisers To Learn More

Our last big economic downturn makes it even more important to conduct a comprehensive IT Valuation, even if you aren’t planning to sell your business or acquire another. Technology firms, software vendors and hardware manufacturers went through the same hard times as everyone else—you need to know that they still stand on solid ground, that they haven’t been devalued. An effective and independent IT evaluation will not only help you ensure you have the software systems, people, processes and technology to drive greater efficiency and performance, but may add to the overall value of your business. For more information about corporate valuation, or to get started, contact Hartman Executive Advisors today.

categories logoIT Strategy

Primary Sidebar

Types

  • Article
  • Press
  • Vlog
  • Webinar

Topics

  • COVID-19
  • Cybersecurity
  • Featured
  • IT Due Diligence
  • IT Management
  • IT Strategy
  • Leadership
  • Risk Management Consulting
  • Strategic Services
  • Systems & Software

Related Blogs

the concept of innovation being portrayed by a city

The Cost of Innovation: Why Financial Institutions Need to Invest in Innovation

January 27, 2021

There is no question that there are costs associated with innovation. However, there are higher costs, especially in the long term, associated with [...]
Read More

digital transformation on a key board

Digital Transformation – A Necessity for Middle Market Success

December 9, 2020

Middle market organizations often get by with manual processes, spreadsheets, and workarounds when it comes to their data. When systems functionally[...]
Read More

a business owner planning a strong IT strategy for 2021

Developing A Strong IT Strategy For 2021

December 1, 2020

Organizations around the world were challenged in unexpected ways by the COVID-19 pandemic. Some companies shut down, while others were able to pivot [...]
Read More

Footer

It's Time to Reach Out
Are you ready for independent IT Leadership?
Contact Us

Hartman Executive Advisors

1954 Greenspring Drive Suite 320 Timonium, MD 21093
410-587-0064

Services

  • Business Strategy Consulting
  • Risk Management Consulting
  • IT Management Consulting
  • IT Strategy Consulting

Resources

  • Blog
  • Case Studies
  • eBooks
  • Executive Technology Survey Results
  • Maryland CIO Roundtable
  • Speaking Engagements
Sign Up for Our Newsletter
Subscribe to Hartman Executive Insights
  • This field is for validation purposes and should be left unchanged.
© 2021 Hartman Executive Advisors · Powered by 321 Web Marketing · Website Privacy Policy & Terms of Use