Series 79 practice questionmediumOperational due diligence – IT systems
In operational due diligence, why is an assessment of the target’s IT infrastructure important?
- AIt can reveal integration challenges post-acquisition✓ Correct answer
- BIt ensures all tax filings are accurate
- CIt verifies the company's legal entity structure
- DIt replaces the need for HR due diligence
Explanation
Why A — It can reveal integration challenges post-acquisition
IT infrastructure impacts integration, data compatibility, and business continuity post-deal. It does not directly ensure tax or legal accuracy and cannot substitute for HR due diligence.
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