IT Due Diligence – Reduce the risk and costs associated with M&A transactions

With software pervading virtually every industry and M&A deals on the rise, it is now more important than ever for businesses to ensure effective due diligence is carried out in M&A transactions. Identifying and investigating IT assets in the early stages of a deal is necessary to avoid a range of issues including security, quality and open source licensing, which often leads to unanticipated IT spend and possible regulatory compliance issues or even termination of a deal.

Cloud Business Models and the Evolution of Open Source Licenses

Software has become critical to the success of companies in industries far removed from technology from banking to automotive to manufacturing.  Moreover software deployment is rapidly moving from “on premise” to functions provided by third party services without software being distributed (such as and the move of companies to cloud computing. This fundamental change in the manner in which software is used means that companies need to understand how OSS licenses apply in this new world.  

The Importance of Open Source Due Diligence in M&A

Today's technology companies are increasingly utilizing free and open source software (FOSS) to help enable innovation in their development organizations. However the day to day practice of using FOSS is often uncontrolled, potentially creating unknown legal, business and operational risks arising from the unique obligations found in many open source licenses. As a result, acquiring companies are now focusing more heavily on open source and third party code in their due diligence practices to uncover issues before M&A transactions are completed.


Subscribe to Black Duck RSS