In the fast-paced world of technology business, mergers and acquisitions (M&As) have become commonplace. Companies often seek growth, innovation, and market expansion through these strategic moves. However, amidst the excitement of potential synergies and increased market share, there is a lurking danger that can significantly impact the success of an M&A deal: technical debt.
Technical debt encompasses a wide range of risks and issues within the software development ecosystem: code quality, architectural and design health, open source license compliance, open source code vulnerabilities, and inefficiencies and immaturity in software development life cycle (SDLC) methodologies and practices. Moreover, it extends to security vulnerabilities and insecure code design and management as well. In this blog post, we will explore how various forms of technical debt can translate into substantial business risks that should be scrutinized during the software due diligence phase of a tech M&A deal.