The potential risk and exposure posed by M&A transactions demand thorough and robust due diligence practices. When an acquisition involves software, it's critical to ensure that associated risks are identified and fully understood. Knowing what questions to ask when performing due diligence is key to avoiding potential risks and legal complications. This is especially true for the acquisition of software, which more often than not poses a multitude of risks that may not be immediately evident.
What to worry about in M&A transactions
Software due diligence, when performed adequately and effectively, should encompass the examination of the target across various facets. Some key areas of focus include: