posted 9th April 2026
In today’s M&A environment, one of the biggest risks in acquiring a business is not fully understanding its software estate.
This is where SBOMs (Software Bills of Materials) become critical.
Think of an SBOM as the ingredients list for software. It provides a clear inventory of all components within an application, including:
• open-source libraries
• third-party dependencies
• version numbers
• software licenses
• known vulnerabilities
• supplier provenance
When acquiring a company, especially one where technology underpins value, this visibility is essential.
Too often, buyers focus on financial, legal, and operational due diligence while overlooking software supply chain risk.
That can be costly.
An acquisition may look strong on paper, but hidden within the target’s systems could be:
• outdated frameworks
• unsupported libraries
• critical security vulnerabilities
• restrictive open-source licenses
• significant technical debt
Without an SBOM, these issues may only emerge after completion, when remediation costs, integration delays, and cyber risks become the buyer’s problem.
From a cybersecurity perspective, SBOMs help identify exposure to known vulnerabilities such as Log4Shell-style risks and other published CVEs.
From a legal standpoint, they reveal whether the business is relying on software governed by licenses such as GPL or AGPL, which may introduce obligations around source code disclosure.
From an investment perspective, this directly affects:
• valuation assumptions
• integration costs
• post-deal capex
• risk allocation and indemnities
In short, SBOMs help quantify the real cost of ownership.
They are equally important for post-merger integration.
A clear software inventory accelerates decisions around platform consolidation, cloud migration, engineering team alignment, and technology rationalisation.
For boards, CISOs, and deal teams, the question should no longer be “Do we need an SBOM?”
The question should be:
“Why would we acquire a software-dependent business without one?”
In modern transactions, software risk is business risk.
If technology is part of the investment thesis, SBOM review should be a standard component of due diligence.
You cannot confidently acquire what you cannot fully inventory.
hashtag#CyberSecurity hashtag#MergersAndAcquisitions hashtag#PrivateEquity hashtag#SoftwareSupplyChain hashtag#SBOM hashtag#TechnologyDueDiligence hashtag#RiskManagement hashtag#DigitalTransformation
Lorem ipsum dolor sit amet consectetur adipiscing elit. Quisque faucibus ex sapien vitae pellentesque sem placerat. In id cursus mi pretium tellus duis convallis. Tempus leo eu aenean sed diam urna tempor. Pulvinar vivamus fringilla lacus nec metus bibendum egestas. Iaculis massa nisl malesuada lacinia integer nunc posuere. Ut hendrerit semper vel class aptent taciti sociosqu. Ad litora torquent per conubia nostra inceptos himenaeos.
Lorem ipsum dolor sit amet consectetur adipiscing elit. Quisque faucibus ex sapien vitae pellentesque sem placerat. In id cursus mi pretium tellus duis convallis. Tempus leo eu aenean sed diam urna tempor. Pulvinar vivamus fringilla lacus nec metus bibendum egestas. Iaculis massa nisl malesuada lacinia integer nunc posuere. Ut hendrerit semper vel class aptent taciti sociosqu. Ad litora torquent per conubia nostra inceptos himenaeos.
