Mergers and acquisitions (M&A) can be described as the process that leads to a consolidation of companies. In any M&A case, both sides seek to be certain of the financials – both present and projected. Therefore, parties rely on the due diligence process to uncover the factors affecting the P & L and cash flow, and in turn enterprise value.

Even though the lawyers, advisers, investment bankers and reporting accountants may each focus on their own DD issues and risk concerns, one specific area that is rarely confronted is that of latent software license costs.

Click here to read the full article written by Robin Fry.