Top 3 IT Issues a Private Equity Firm Should Lock Down Before Closing a Deal

When it comes to private equity, speed and certainty are everything. But amid the push to close deals quickly, many firms risk overlooking critical factors that can affect value post-close, particularly when it comes to IT, cybersecurity, and operational resilience. A promising portfolio company can quickly become a liability if it means inheriting outdated systems, hidden vulnerabilities, or compliance risks.

Before you close, make sure you’ve locked down these three areas to protect your investment and ensure a smoother transition to value creation.

1. Cybersecurity Risk & Exposure

Cybersecurity is no longer just an IT concern. It’s a boardroom-level issue. A company with a weak cybersecurity posture or hidden vulnerabilities can introduce immediate and long-term risk into your portfolio. And if you’re inheriting a regulated business, the stakes are even higher.

What to lock down before close:

• A clear understanding of the company’s current cybersecurity posture
• Any recent breaches, incidents, or near misses
• Existing tools in place (EDR, MFA, firewalls) and whether they’re effectively managed
• Alignment to compliance frameworks
• Gaps that could affect your insurance or regulatory exposure

Why it matters: Cyber risk can derail your value creation strategy fast. Addressing it early allows you to plan for the right investments and avoid surprises post-close. Thrive helps PE firms assess and strengthen cybersecurity from day one, ensuring your investment is protected.

2. IT Infrastructure & Scalability

Too often, the underlying IT infrastructure of a target company is outdated, overly complex, or poorly documented. Whether you’re planning a bolt-on acquisition, aggressive growth, or digital transformation, the target company’s tech stack needs to be scalable and secure.

What to lock down before close:

• An inventory of systems, applications, and hardware. Determine what’s in use, what’s legacy, and what’s business-critical
• Cloud readiness and current hosting environments
• Licensing, vendor contracts, and key dependencies
• Scalability of infrastructure to support your growth goals

Why it matters: Technical debt becomes your debt. Identifying infrastructure weaknesses early enables faster integration, smoother transitions, and better alignment with long-term plans. Thrive’s pre-close IT assessments help PE firms evaluate a target’s technical maturity and lay the groundwork for modernization and operational excellence.

3. Operational IT Support & Internal Capabilities

Post-close execution depends heavily on people and processes, not just tools. If your target lacks the right IT personnel or relies on informal practices, you’ll need a clear plan to fill those gaps quickly.

What to lock down before close:

• Understanding of the current IT team structure and skill sets
• Level of documentation and maturity of IT operations
• Presence (or absence) of formal IT policies, SLAs, and response plans
• Vendor and MSP relationships: are they strategic, tactical, or non-existent?

Why it matters: Without operational maturity, IT can quickly become a roadblock to growth. Thrive helps firms identify where external support is needed and can immediately step in post-close to deliver managed IT, cybersecurity, compliance, and scalable infrastructure services without missing a beat.

Secure the Win Before You Sign

Closing a deal is just the beginning. To maximize ROI and reduce surprises, PE firms must treat IT and cybersecurity as critical pillars of the due diligence process, not afterthoughts. From uncovering cyber risk to assessing scalability and support needs, Thrive helps private equity firms make smarter, faster decisions that protect investments and accelerate value creation. Contact Thrive today to learn more about how you can protect your investments and grow.