• CASE STUDIES

M&A Risk Assessment $190M Manufacturing firm

Challenge

BT Align was retained as the independent buy-side IT and cybersecurity risk advisor in support of a potential $190M acquisition within the manufacturing sector. The engagement was designed to identify technology-related risks that could impact valuation, operational continuity, integration planning, and post-close capital requirements.

Provide executive-level clarity into infrastructure stability, cybersecurity exposure, vendor dependency, governance maturity, and organizational readiness — within a compressed due diligence timeline.

Given the operational sensitivity of manufacturing environments, particular attention was placed on system uptime, production support infrastructure, backup resiliency, and network security controls supporting plant operations.

Solution

  • The diligence process identified several material risk factors with potential financial and operational implications:

    • Missing or underdeveloped security and governance policies

    • Business Continuity and Disaster Recovery gaps affecting production resilience

    • Deferred infrastructure modernization initiatives requiring future capital investment

    • Vendor concentration and MSP dependency risk

    • Cyber insurance coverage misalignment with operational exposure

    • IT staffing limitations impacting scalability and plant-level support

    While no active compromise was identified, the organization’s cybersecurity and operational risk posture required structured remediation to reduce disruption risk and protect enterprise value.

Results

BT Align delivered a prioritized risk assessment, remediation cost considerations, and a post-close stabilization roadmap aligned with manufacturing operational continuity requirements.

The findings enabled the acquiring group to:

    • Incorporate technology risk into valuation modeling

    • Anticipate capital expenditure needs

    • Strengthen negotiation positioning

    • Develop a 90-day post-close stabilization strategy focused on production continuity