Target: Manufacturing company

IT & Tech Due Diligence for a Manufacturing SMB (Buy‑Side)

Green‑lighted close

with a clear, staged upgrade plan that avoids production shocks.

CAPEX clarity

for the first 12–18 months (replace at‑risk endpoints, modest network uplift, ERP pilot).

Risk reduction

across security, supportability, and single‑point‑of‑failure exposure.

Risk & Investment Timeline

60-Day Pre-Close Assessment | Material Exposure Threshold: <$25K

Immediate (0–90 days)

Goal: Stabilize & Secure

Replace outdated endpoints
Enforce MFA, patching, AV/EDR
Validate backups
Document Trimble setup

Near-Term (3–9 months)

Goal: Optimize & Integrate

Segment network & add monitoring
Formalize DR & backup drills
Explore lightweight ERP
Start BIM enablement pilot

Later (9–18 months)

Goal: Modernize & Evolve

Pilot IIoT data capture from production equipment
Establish change management
Formalize vendor & SLA governance

MEV · IT & Tech Due Diligence

Buyer

Private acquirer (SMB deal under exclusive LOI)

Target

45–60 days

Objective

Validate current IT/OT landscape, obsolescence risks, near‑term CAPEX, and BIM readiness; identify cybersecurity and operational risks.

Outcome

Diligence completed; “Clean” technical report with a low‑disruption upgrade path.

Executive Summary

As part of a 60-day pre-close diligence effort under an exclusive LOI, the buyer engaged MEV to assess the target’s IT and OT environments. The goal was to validate infrastructure resilience, cybersecurity posture, and near-term investment exposure before closing.

The target’s IT infrastructure was rated Moderate Risk for operational continuity (Impact < $25K, Probability Low) and Elevated Risk for cybersecurity exposure due to aging endpoints and limited network visibility.

[ challenges/ ]

The Challenge

Due to confidentiality restrictions, the diligence team had very limited access to internal systems, which constrained direct verification of infrastructure, security, and backup processes.

C1:

Unclear presence of an ERP; no MES/SCADA in place.

C2:

Production equipment with possible IIoT features, likely unused.

C3:

Business‑critical toolchain centered on Trimble apps (TRA‑SER, Supplier Xchange, FabShop), plus email/phone/network services.

C4:

No hardware/inventory documentation provided; aging endpoints observed (including Windows 7), suggesting potential security and support gaps.

C5:

Buyer needed a concise, budget‑conscious assessment to quantify near‑term CAPEX and confirm operational readiness (including BIM).

C6:

The team had very limited access to the target’s IT/OT systems.

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[ what we did/ ]

Scope & Approach

To address the limitations, MEV implemented a low-touch assessment framework that combined stakeholder interviews, vendor documentation, and a set of diagnostic scripts deployed remotely. These scripts captured endpoint versions, patch levels, and performance metrics, providing the visibility needed to validate the target’s risk posture without disrupting operations.

Findings were prioritized using risk ratings and CAPEX materiality thresholds, resulting in a practical remediation roadmap grouped into Immediate (0–90 days), Near-Term (3–9 months), and Later (9–18 months) stages.

Technical Assessment

Infrastructure & Hardware: Endpoint fleet condition, network topology, aging OS exposure, and basic resilience (backup/power/FW).

Applications & Data: Versioning/licensing posture for Trimble apps; data flow across quoting, fabrication, supplier portals; export/backup capabilities.

Security & Compliance: Patch hygiene, AV/EDR presence, identity/access controls, email security, and third‑party exposure.

Operations & Scalability: Gaps vs. light‑weight ERP needs; feasibility of adding BIM‑adjacent workflows; risks from missing MES/SCADA.

Risk & Investment Modeling

Prioritized issues into Immediate (0–90d), Near‑Term (3–9m), Later (9–18m) with ballpark cost bands to inform CAPEX.

Defined a conservative change strategy to avoid downtime and customer impact.

Deliverables

Diligence Report: capabilities, gaps, risks, and remediation roadmap.

Buyer read‑out (video): walkthrough of findings, Q&A, and decision support.

Risk Findings Matrix

IT/OT Due Diligence for a Manufacturing SMB (Buy-Side)
60-Day Pre-Close Assessment | Material Exposure Threshold: $25K

Assessment Dimension

Risk Rating

Key Findings

Infrastructure
& Hardware

MODERATE RISK

Impact < $25K · Probability: Low

~14 aging workstations identified (including Windows 7)
Network topology functional but lacks segmentation
Limited backup/DR visibility; validation required
Firewall and UPS documentation incomplete

Applications
& Data

SERVICEABLE BUT MANUAL

Qualitative assessment

Trimble stack (TRA-SER, Supplier Xchange, FabShop) operational
No ERP layer; no MES/SCADA implementation
Manual workflows between quoting → fabrication → suppliers
Data export/backup routines need validation
BIM potential present but underutilized

Security
& Compliance

ELEVATED RISK

Aging endpoints · Limited visibility

Windows 7 devices present (security & support risk)
Patch hygiene unclear; cadence undocumented
AV/EDR presence uncertain; endpoint gaps
MFA not consistently enforced
Limited network visibility; third-party exposure

Operations
& Scalability

IMPROVEMENT POTENTIAL

Qualitative assessment

IIoT equipment underutilized (telemetry potential)
No MES layer limits production visibility
Lightweight ERP could reduce manual handoffs
BIM readiness partial; integration gaps exist
Change management and process maturity needed

Operational Continuity:

Moderate Risk

(Impact < $25K · Low Probability)

Cybersecurity Exposure:

Elevated Risk

(Aging endpoints · Limited visibility)

Remediation Status:

Clear Upgrade Path

(Low-disruption, staged)

Artifacts We Produced

A1:

Executive report + appendix with issue register and remediation plan

A2:

Endpoint & Network summary (incl. ~14 workstations)

A3:

System map (applications, data flows, integrations)

A4:

Vendor table (contracts, renewal dates, support tiers)

A5:

Key personnel & responsibilities snapshot

Andrew

Manufacturing business buyer

Given their background in custom software development, they are perhaps an unusual partner for IT DD, but I actually believe this was their strength. Their focus on custom means they are used to unstructured problems where they need to come up with the method AND the solution, which is a great fit for evaluating small businesses because SMB rarely have the "standard / industry-best-practice" equipment and tools that you will find in Corporate America. Folks who work on custom also need to be versed in a variety of technologies, not just the latest-and-greatest, which was helpful for my target, which is really old-school and has old tech.

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IT & Tech Due Diligence for a Manufacturing SMB (Buy‑Side)

Executive Summary

The Challenge

Scope & Approach

Artifacts We Produced

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No Sales Pitch — We’re Here to Dig Into Your Challenges