Why IT Due Diligence Is the Missing Piece in Senior Living M&A Deals
Mergers, acquisitions and affiliations in the senior living sector come with high stakes and high expectations. In October 2025, senior living and care saw a record-breaking 110 publicly announced mergers and acquisitions. This is the highest number of transactions ever recorded in a single month. (Source). Operators invest significant time evaluating finances, operations, staffing models, and compliance. There’s one area that often gets overlooked or underestimated:
Information Technology.
While it may not be the flashiest line item on the checklist, IT can quietly make or break a deal post-close. Failing to conduct IT due diligence often results in unforeseen costs, operational disruptions, or security vulnerabilities at precisely the moment when seamless integration matters most.
Let’s explore why IT assessments are no longer optional during M&A transactions, especially in senior living.
Every Department Depends on Technology
From EMR to nurse call systems, Wi-Fi access, phone systems, and business applications, every aspect of a senior living community touches IT infrastructure. If you're acquiring a community without knowing what technology environment you’re inheriting, you’re assuming risk blindfolded.
Imagine buying a property and not inspecting the roof or HVAC system. IT systems deserve the same scrutiny.
What’s Often Missing in M&A Evaluations?
While most M&A processes include financial audits and facility inspections, IT due diligence is frequently limited to internal reports or checklists if it's done at all. Unfortunately, those methods only offer a partial picture.
Here are the top risks we’ve seen in post-acquisition environments:
Aged infrastructure: Server rooms held together by duct tape and legacy equipment.
Incompatible systems: EMRs or scheduling tools that don’t match your organization’s platforms.
Unknown vulnerabilities: Outdated firewalls, lack of backup procedures, or unmonitored endpoints.
License duplication: Paying for the same software across two organizations.
Data silos: Systems that don’t communicate, creating workflow inefficiencies.
All of this can disrupt operations, frustrate staff, and result in costly rework. None of which shows up in the P&L during acquisition talks.
Why IT Due Diligence Matters More in Senior Living
Senior living has unique technology demands. Communities rely on consistent, secure access to systems that directly affect care delivery and resident engagement. If Wi-Fi isn’t stable, staff can’t access EMRs. If phone systems are outdated, families can’t reach their loved ones easily. If access control or security systems are neglected, compliance is compromised.
Unlike other industries, downtime in senior living affects people.
What an IT M&A Assessment Should Include
A proper IT due diligence process is more than reviewing spreadsheets. It should include:
Onsite infrastructure walkthroughs: To assess actual physical conditions
Fix-It Priority Lists: Including Red/Yellow/Green indicators of critical needs.
Hardware and software inventory: So you know what exists, what’s outdated, and what’s redundant.
Security & compliance review: To uncover potential liabilities early.
Integration roadmap: Optional, but invaluable for post-close alignment and planning.
Don't Just Inherit IT, Understand It
Leadership transitions, acquisitions, and affiliations are exciting opportunities for growth. They’re also vulnerable moments for technology oversight. You wouldn’t buy a car without looking under the hood so why treat IT any differently?
Ready to Take the Guesswork Out of M&A IT Decisions?
Parasol Alliance’s IT M&A Assessment service is designed specifically for senior living providers. With real boots-on-the-ground inspections, fast turnarounds, and clear risk prioritization, we help you walk into your next deal with clarity and confidence.
Learn more about our IT M&A Assessment here