Due Diligence

Software powers the digital economy. Business leaders require actionable information on IT/business assets to perform due diligence before conducting M&A (mergers & acquisitions) activity. Oftentimes, technical due diligence is done without looking under the hood at the technology being purchased, even when a large part of the value of the acquisition is the underlying technology.

 

The CISQ Automated Quality Characteristic Measures for Security, Reliability, Performance Efficiency and Maintainability are comprised of weaknesses in software that create risk and cost. The metrics are used as indicators of potential operating problems or excessive maintenance costs. The new Technical Debt standard, based on these indicators, is also a useful metric to predict the negative equity being purchased. Software quality metrics can also be benchmarked to see if the asset is of normal caliber, or below or above par.

 

Increasingly, pre-M&A due diligence is being done with more information than just hearsay about the technology. CISQ standards are elemental to getting a true assessment of a purchased technology asset.