In my five years of discussions with hundreds of M&A experts, PE CEOs, and Supply Chain Managers, I’ve observed that automated source code analysis holds untapped potential as a powerful tool for successful M&As and efficient software development, and its true power is yet to be fully realized.
Buyers on the PE and VC side often overlook source code analysis due to a lack of awareness, fear of complexity, security, confidentiality or cost concerns. Meanwhile, sellers tend to be overly protective of their code, making access during due diligence a challenge.
Many equate source code scanning with manual code inspection, unaware of advanced techniques like “blind” audits that allow complete code assessment without code sharing. Unfortunately, these advancements remain largely unknown in the market.
“Technical debt” is a buzzword, but its true meaning is often elusive. (check: ISO/IEC 25010 and ISO 5055). Source code Quality is treated as a holy grail that no one has ever seen.
Source Code Analysis is frequently confused with Software Composition Analysis. While the former evaluates privately owned code, the latter assesses security and license compliance of third-party only components. Both are crucial for a comprehensive evaluation.
“Technical debt” is a buzzword, but its true meaning is often elusive. (check: ISO/IEC 25010 and ISO 5055). Source code Quality is treated as a holy grail that no one has ever seen.
Confusion also arises between application security and source code quality. Both aspects must be considered for a successful M&A.
It’s essential to realize that manually assessing the quality and estimating technical debt in modern codebases is impractical. Automated source code assessment is faster and cost-effective, providing a clear advantage.
Automated source code analysis is a valuable asset for M&A and software development. Dispelling misconceptions and understanding its significance is key to leveraging its full potential.
Risk Identification
Uncovering bugs, vulnerabilities, and compliance issues that could pose financial and legal risks post-acquisition.
Valuation Accuracy
Quality code enhances software and company valuation, while poor quality adds maintenance costs.
Valuation Accuracy
Quality code enhances software and company valuation, while poor quality adds maintenance costs.
Integration Planning
Quality code streamlines system integration, reducing costs.
Intellectual Property Verification
Ensures original, legally sound IP, safeguarding against future issues.
Future Costs
Predicts development and maintenance expenses.
Tech Strategy Alignment
Evaluates scalability and alignment with long-term objectives.
Market Competitiveness
Affects product performance and competitiveness. High-quality code maintains market edge.
CodeWeTrust goes beyond mere “detection” of vulnerabilities, defects, bugs, and license issues. Instead, we focus on measuring the overall QUALITY by thoroughly scanning confidentally both SOURCE CODE and 3rd-party components. Our reports are tailored for informed acquisition and software development management decisions