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Disaster Recovery Assessment in M&A Technical Due Diligence

Disaster recovery capabilities directly impact business continuity risk. Understanding DR maturity is essential for acquisitions of mission-critical systems.

Key Metrics

RTO (Recovery Time Objective)

How quickly must systems be restored?

  • Critical systems: Minutes to hours
  • Important systems: Hours to days
  • Standard systems: Days

RPO (Recovery Point Objective)

How much data loss is acceptable?

  • Zero RPO: No data loss (synchronous replication)
  • Near-zero: Minutes of data (async replication)
  • Standard: Hours to days (backup-based)

Assessment Areas

1. Backup Strategy

  • Backup frequency and retention
  • Backup testing and verification
  • Off-site storage
  • Encryption at rest

2. Replication

  • Database replication setup
  • File system replication
  • Cross-region capabilities
  • Failover automation

3. DR Testing

  • Test frequency and scope
  • Documented test results
  • Identified gaps and remediation
  • Team participation

4. DR Documentation

  • Recovery procedures
  • Contact information
  • Dependency documentation
  • Communication plans
Key Takeaway: DR capabilities that haven't been tested are theoretical at best. Ask for evidence of successful DR tests, not just plans.

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