The due diligence process of a sale/acquisition can vary from a short, high-level sprint to a drawn-out, detailed marathon. Regardless, the importance of accurate assessment of data and software products is essential to properly valuing the assets or equity of a company. Without accurate risk assessment, sellers may find themselves personally liable for security, licensing, or regulatory issues within the sold assets and buyers may discover too late that the value of the sale is eclipsed by potential liabilities of previously undiscovered issues. Licens.io solutions safeguard both parties against unpleasant surprises, either before or after a sale.

PRE-ACQUISITION

Whether you’re a private equity or acquiring company, you want to be confident of the value of the company or software you’re acquiring. Utilizing Licens.io software during the due diligence process highlights red flags that may exist in the running applications or source code, thus allowing you to properly value historic and/or potential ongoing liabilities and appropriately structure the deal.

POST-ACQUISITION

In some cases, time is of the essence, and deep diligencing is foregone in favor of a quick close. Other times inexperience or simple oversight can lead to less than optimal due diligence. In either case, it can be beneficial to perform ex post facto analysis and monitoring of data, source code, and running applications. By using Licens.io software to assess the acquired software and information, buyers can ameliorate compliance issues and reduce or eliminate potential liabilities.