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Comprehensive insights into your code

M&A Technology Due Diligence

What we do

Divoro software audits provide the information your firm needs to quickly assess a broad range of software risks in your acquisition target’s software. Get a complete picture of code quality, open-source license obligations, and application security risks so you can make informed decisions with confidence.

Technology Stack

Audit the technology stack used by the company to ensure that it is modern, scalable, and reliable. This includes evaluating the programming languages, frameworks, databases, and cloud infrastructure used.

Architecture Design 

Evaluate overall project architecture to ensure it is scalable, flexible, and resilient. This includes evaluating how the team manages its infrastructure, data storage, and security.

Development Process 

Assess development processes to ensure they are efficient, productive, and well-structured. This includes evaluating how the team manages code, deploys changes, and handles testing and quality assurance.

Code Quality

Appraise how well code is written, including comparisons to industry benchmarks of quality, reusability, extensibility, and maintainability of proprietary code.

Open-source Code 

Analysis of the codebase to create an open-source software Bill of Materials, which identifies license conflicts, obligations, and known security vulnerabilities.

Application Security

Assess security robustness, uncover potential security weaknesses, and evaluate the overall design for missing security controls.

Audit services for M&A

Divoro can identify and assess all open source and third-party components, licenses, and vulnerabilities in the target codebase with these audit scenarios:

Private equity

Divoro acts as a technical advisor to private equity firms and their portfolio companies seeking to identify preclose issues and affirm plans before clients proceed with investments. We work alongside strategic advisors and in-house value creation teams. And we have the broad experience to take on the entirety of software due diligence.

Strategic acquirers

Divoro partners with in-house diligence teams and acts as a trusted third party to audit the code and identify risks and technical debt associated with code quality, architecture, application security, and third-party code. With Divoro in the mix, the target is comfortable that its IP is protected, and strategic acquirers get a complete picture of the technology it’s buying.

Seller preparation

When preparing to sell your company or technology, it’s important to realize the questions most acquirers will be trying to answer during technical due diligence process. Divoro has advised acquirers on software due diligence in variety of transactions. Our team can identify what might be red or yellow flags for a typical acquirer, enabling you to get your business in order before a transaction, and sleep better the night before diligence starts.

Did you know?

Divoro assessments of varieties of M&A deals reveal the potential risks associated with acquiring software:

100%

codebases contain open source

86%

of codebases have license conflicts

99%

of codebases have at least one vulnerability

98,3%

contained open source more than four years out-of-date

"When we make an acquisition, we use a variety of Divoro services, which has allowed us to consolidate the third-party requirements into one vendor and one solution. That has made it a lot easier to understand the risks before we bring new technology into our portfolio."

Diversis Capital, Private Equity

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