“I have been delighted with the rigour and professionalism that Intuitus has shown throughout the acquisition process and we look forward to their continued support as we integrate the two businesses.”
Sound Control
Case Study Sound Control acquires The Academy of Sound
Date: Nov 2005 Sector: Retail
Intuitus has provided the IT due diligence advisory service to support the acquisition by Sound Control, the UK’s largest musical instrument retailer, of The Academy of Sound, a competitor business. Funding for Sound Control’s acquisition was provided by Bank of Scotland, Corporate, an existing investor.
As part of its due diligence activities, Sound Control wished to gain a clear understanding of the capabilities of The Academy of Sound’s IT systems and organisation. It also required an independent, expert recommendation as to which of the two companies’ IT systems (if any) should be used to support the enlarged business.
Intuitus conducted its due diligence in two stages. In the first stage we assessed the general capability, merits and limitations of The Academy of Sound’s IT systems and organisation. This included a supplier assessment of The Academy of Sound’s core retail system. In the second stage we assessed Sound Control’s own systems and organisation.
Both assessments included a review of each company’s operating model and core business processes with a particular focus on purchasing, inventory management and financial integration and reporting. From a systems perspective we considered systems ownership, application architecture and integration, fitness for purpose, support and maintenance arrangements, business continuity planning and the skills, both technical and management, of the IT function.
Based on these assessments, Intuitus made recommendations for the IT systems and organisation requirements for Sound Control’s enlarged business. Our findings and recommendations were summarised in a due diligence report that focused on the operational and IT risks, issues and priorities that were relevant both to Sound Control’s business case for the acquisition and to Bank of Scotland’s interests as a provider of new funds.
Since advising on the due diligence, Intuitus has been retained by Sound Control to lead the IT integration planning exercise and to manage the implementation project.
Alan Ross, Director of Integrated and Acquisition Finance at Bank of Scotland, added: “Intuitus has advised the Bank on previous occasions and I was confident this could be extended to one of our portfolio companies. Not only has Intuitus given the Bank a heads up on systems performance and risk, but clear guidance has been provided to Sound Control as it embarks upon the next exciting phase of its development.”
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For more information contact:
Calum Stewart, Managing Director, Intuitus Limited
T: +44 (0)1383 510592
E: calum.stewart@intuitus.co.uk