This whitepaper analyzes open source risks in mergers and acquisitions using audit data from real transactions. It reveals that open source is nearly universal in modern software, with most codebases containing thousands of components and widespread issues such as vulnerabilities and license conflicts. The paper highlights key risks, including outdated components, unpatched vulnerabilities, and hidden dependencies introduced through code snippets and third-party integrations. It emphasizes the importance of software composition analysis (SCA) and automated audits to identify risks, ensure compliance, and inform deal decisions. By understanding these risks, acquirers and sellers can better manage software value and avoid costly surprises during due diligence.

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