Managing software due diligence for merger and acquisition (M&A) transactions can be a tricky path to navigate. While frequent acquirers have an established playbook, it is important to acknowledge that every transaction is multifaceted, and strategies must adapt and evolve in line with changes to the market. Consequently, firms should reflect on how they tackle their software due diligence strategies to ensure complete visibility into how software risks can impact on the deal. In a typical tech transaction, open source and third-party content makes up a surprising 75% of code assets. And most sellers don’t have a complete and accurate picture of how much of someone else code they are using. By identifying open source content and the associated risks before the close, acquirers can protect themselves with deal terms and plan for remediation work required after the close.
For the better part of two decades, Black Duck audits have been the most trusted open source diligence solution for M&A transactions and internal compliance. Our Black Duck Audit team is engaged in hundreds of M&A transactions each year, and we identify risks in virtually every transaction. Not only do our domain experts (armed with world-class tools) assess risks associated with open source and third-party code, but we also dig into security vulnerabilities, architecture flaws, code quality, and deficiencies in the software development process. Whether you are acquiring or being acquired, you need an audit partner that can provide fast, trusted, and comprehensive software audits to mitigate these risks, so you can make informed decisions with confidence.