Do Design Quality and Code Quality Matter in M and A Tech Due Diligence
In an acquisition where a software asset is a core part of the deal valuation, it’s important to understand the overall quality of the software before doing the deal. Buggy software is problematic and needs to be cleaned up, so assessing code quality is important. But also, with poorly designed software, every fix is costly, laborious, and risky. The cost of fixes can significantly affect the long-term technical and economic viability of the application, and maintaining the software can seriously degrade ROI. That’s why understanding a software system’s design and architectural health and the likely “cost of ownership” is key.