IT — is it a bug or a feature? An inescapable line item, or a precisely-calibrated business driver? As an entrepreneur, you’re likely familiar with the role IT operations play in keeping both the day-to-day and long-term health of your company in tip-top shape. However, when an acquisition takes place, it’s critical to take the opportunity to shift from simply maintaining your existing systems to actively and deliberately empowering your IT to adapt and evolve into a powerful tool for creating business value.

Your IT function needs to be seen not just as a cost center but as a net value creator. The goal is for your IT investments to offset the entire IT budget and, ideally, generate 2-3 times that amount in real, measurable business value.

Moving Beyond IT Operations

During the early post-acquisition phase, it’s common for IT to focus on maintaining systems, ensuring uptime, and keeping operations secure. But as your company becomes more integrated and the Transitional Service Agreement (TSA) concludes, it’s the optimal time for a shift. Instead of just keeping the lights on, IT can and should actively contribute to your business’s growth and profitability.

The key is to align your IT strategy with your company’s overall goals. IT shouldn’t be a siloed function; rather, it must be a strategic partner that helps drive revenue, efficiency, and innovation.

IT as a Net Value Creator

To transform IT into a value creator, you must go beyond traditional IT metrics like uptime and security, and instead focus on how IT can directly impact your bottom line. For example, IT can help increase revenue by optimizing eCommerce platforms or supporting new customer-facing tools. It can drive efficiency by automating workflows, reducing manual processes, and cutting costs.

Additionally, IT can foster innovation, which is crucial for long-term growth. By leveraging new technologies – like AI, analytics, or cloud solutions – you can gain a competitive edge and open new opportunities in the market. IT should be seen as an enabler for business transformation, helping to create new products or expand into new markets.

From Cost Center to Profit Driver

By the time the TSA is over, your IT function should no longer be viewed as a cost burden. Instead, it should be recognized as a key driver of business value. This is essential when preparing for an exit. Potential buyers won’t just look at your financial performance; they’ll delve deeper, evaluating the overall strategic value of your IT infrastructure. If your IT function is delivering measurable, business-driving results, it will significantly increase your company’s overall value.

Measuring IT Operations’ Impact

To demonstrate IT’s value, it’s crucial to measure its impact on business outcomes. Establish key performance indicators (KPIs), hard and quantifiable data that links IT projects to tangible results, such as revenue growth, cost reduction, or customer satisfaction. By tracking these metrics, you can clearly show how IT is contributing to the business’s success.

Not a Bug… a Feature

As you grow and develop your company, and especially if approaching the sale of your company, it’s important that your IT function is fully and visibly aligned with your business goals. The strength of your IT infrastructure will play a key role in the company’s valuation. By shifting the focus of IT from maintenance to value creation, you’ll position your company for both operational success and a stronger exit.

The bottom line is: is it clear whether your IT function has helped move the business forward? If it is and if it has, then you’ve successfully transformed IT into a key driver of growth, creating value that will help maximize your company’s return.

Not sure where to begin? Give us a shout to start evaluating and evolving your company’s IT function!