# Open Source Audits in Merger and Acquisition (M&A) Transactions

> Provides an overview and practical guide to open source audits in merger and acquisition (M&A) transactions.

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LLMS index: [llms.txt](/llms.txt)

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This document is a translation of *Open Source Audits in Merger and Acquisition Transactions: The Basics You Must Know* (by Ibrahim Haddad, Ph.D., 2018), published by the Linux Foundation. The original author has not reviewed this translation. The original can be viewed at the [original PDF](https://www.ibrahimatlinux.com/wp-content/uploads/2022/01/OpenSourceAudits_MergerandAcquisition.pdf).


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In an era where software sits at the center of every deal, open source due diligence has become standard practice in mergers and acquisitions (M&A). This book covers how open source audits are conducted in M&A transactions, and what the acquirer and the target company each need to prepare.

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Section pages:

- [Chapter 1. Introduction](/en/docs/audit_in_ma/1-introduction/): Introduces an overview of the open source audit process in M&A transactions.
- [Chapter 2. Common Open Source Usage Scenarios](/en/docs/audit_in_ma/2-usage-scenarios/): Summarizes the ways open source enters a codebase: incorporation, linking, and modification.
- [Chapter 3. Open Source Audits](/en/docs/audit_in_ma/3-audits/): Explains why open source audits are performed, the criteria for deciding whether to commission one, and the inputs and outputs of the audit process.
- [Chapter 4. Estimating Audit Scope](/en/docs/audit_in_ma/4-scope/): Explains the code size and characteristics an auditor must understand to produce an audit estimate, and how urgency affects cost.
- [Chapter 5. Audit Methods](/en/docs/audit_in_ma/5-audit-methods/): Explains the procedures and trade-offs of three audit methods: traditional audits, blind audits, and do-it-yourself (DIY) audits.
- [Chapter 6. Notes on the Final Report](/en/docs/audit_in_ma/6-final-report/): Notes that final reports may contain a lot of noise, requiring time to filter out real issues, and that SPDX-format reports must be requested to be received.
- [Chapter 7. Security and Version Control](/en/docs/audit_in_ma/7-security-version-control/): Explains that vulnerabilities in open source projects are disclosed alongside the fix process, and that although security and version control are not part of compliance due diligence, scan service providers may address them separately.
- [Chapter 8. Pre- and Post-Acquisition Remediation](/en/docs/audit_in_ma/8-remediation/): Covers the options for resolving compliance issues revealed by the audit, and how the cost of each option can be used in valuing the target company.
- [Chapter 9. Preparing for an Audit as a Target Company](/en/docs/audit_in_ma/9-target-preparation/): Covers how a target company can prepare in advance for an open source audit through its regular compliance activities.
- [Chapter 10. Preparing for an Audit as the Acquirer](/en/docs/audit_in_ma/10-acquirer-preparation/): Covers the decisions the acquirer must make before commissioning an audit, and the additional obligations after receiving the audit results.
- [Chapter 11. Recommended Compliance-Related Development Practices](/en/docs/audit_in_ma/11-recommended-practices/): Summarizes development practices that reduce compliance issues, and mistakes that must be avoided.
- [Chapter 12. Conclusion](/en/docs/audit_in_ma/12-conclusion/): Summarizes what the target company and the acquirer each need to prepare in order for open source due diligence to proceed smoothly.