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Software Spend and M&A Advisory

Software M&A advisory for the liability hiding in every deal.

Independent software M&A advisory that finds and quantifies the licensing and audit exposure standard diligence misses, before it becomes a post close write down.

Independent software M&A advisory for private equity, corporate development and CFOs. We find and quantify the licensing and audit exposure that standard diligence misses, before it becomes a post close write down.

Software M&A advisory that prices the liability hiding in every deal

Financial diligence maps every dollar of revenue. Almost none of it maps the software. License entitlements, true up exposure, change of control clauses and indirect access sit off the balance sheet until a vendor audit lands months after close and the earnings you underwrote are suddenly wrong. Lawyers review assignment clauses. Code scanners review open source. Reporting accountants review the financials. The latent software licensing and audit exposure, the kind that becomes a seven or eight figure publisher claim, routinely falls through the gap between them.

That gap is our entire focus. Before a deal we map and quantify the exposure so it can be priced in or covered by warranty. After close we reconcile the combined entity, defend the audits that follow, and consolidate duplicated spend into recurring savings.

Where software exposure falls through the diligence gap A horizontal map showing legal, financial and code diligence covering parts of a deal while deployed software usage against entitlement is left uncovered. Four diligence workstreams. One uncovered gap. Legal: assignment and consent clauses Financial: quality of earnings Code: open source scanning Software usage vs entitlement: usually uncovered ReviewedReviewedReviewedThe eight figure blind spot
The latent software position is the one measurement no standard workstream owns.

What our software M&A advisory covers

Eight advisory lines across the full deal lifecycle, each available on its own or end to end.

Proof the risk is real

The public record shows that inherited and disputed licensing turns into very large claims. As of June 2026, reporting on the dispute records that SAP pursued Anheuser Busch InBev for a reported 600 million dollars, and the English High Court ruling in Diageo Great Britain Ltd v SAP UK Ltd [2017] EWHC 189 (TCC) established indirect access liability that press coverage valued near 60 million pounds. These exposures are usually invisible in standard due diligence because the under licensing is latent and unquantified until a notice arrives.

How buyer side software M&A advisory maps to the deal timeline
Deal stageWhat we measureWhat it protects
Pre signingDeployed usage against entitlement for audit prone publishersPurchase price, warranty and indemnity scope
Signing to closeChange of control and assignment clauses by contractConsent, termination and repricing risk
First 100 daysCombined effective license positionAudit readiness and breach remediation
OwnershipDuplicated and stranded spend across the estateRecurring cost recovery

Key takeaways

  • Inherited software licensing exposure is usually latent and unquantified in standard diligence, and it lands as a publisher audit after close.
  • The major post deal audit risks come from Oracle, SAP, Microsoft and IBM, and increasingly Broadcom for VMware, Salesforce and ServiceNow.
  • Deal structure decides which clauses bite. Stock purchase, asset purchase, merger and carve out each change the change of control analysis.
  • Found before signing, exposure can be priced into the deal or covered by warranty. Found after close, it is your cost to cure.

Recommendations for buyers

  1. Quantify before you sign. Commission a software exposure number while findings can still move price or warranty scope.
  2. Read the contracts for control triggers. Map change of control and anti assignment clauses against your deal structure.
  3. Reconcile in the first 100 days. Establish the combined effective license position before a publisher does it for you.
  4. Keep the advisor buyer side. Use an independent firm paid only by the acquirer, with no publisher or reseller affiliation.

Explore our software M&A case studies, download a white paper, or start with the glossary of the terms that drive exposure. The full method is set out in our software due diligence guide.

Frequently asked questions

What does a software M&A advisory firm do?
A software M&A advisory firm maps and quantifies the licensing and audit exposure inside a target before a deal closes, then reconciles, defends and consolidates the combined software estate after close. The work sits between legal diligence and financial diligence, where latent licensing risk usually falls through the gap.
Why does software licensing exposure matter in a deal?
Inherited software licensing exposure is usually latent and unquantified in standard due diligence, and it lands as a publisher audit after close. As of June 2026, public reporting shows SAP pursued AB InBev for a reported 600 million dollars and that the Diageo v SAP ruling established indirect access liability, which shows the scale a missed position can reach.
When should we engage an advisor?
The strongest outcomes come from engaging before signing, while findings can still be priced into the deal or covered by warranty. We also support buyers who are already post close, mid carve out, or facing an audit notice.
Are you affiliated with any software publisher?
No. We are independent and buyer side. We hold no affiliation with any software publisher or reseller and are paid only by the acquirer, so our analysis serves your position and no one else.
Which vendors create the most audit risk after a deal?
The major audit risks post deal come from Oracle, SAP, Microsoft and IBM, and increasingly Broadcom for VMware, Salesforce and ServiceNow. A change of ownership is a common trigger for these reviews.

Have a deal in motion?

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