Avoiding Acquisition Risk Through Technical Due Diligence

Overview

A multinational conglomerate engaged ImagineX to perform cyber and technical due diligence during an acquisition. The engagement focused on identifying software vulnerabilities, security risks, and compliance gaps that could affect the target company’s viability or require remediation effort. ImagineX provided a complete evaluation of applications, cloud environments, development processes, and regulatory compliance to support confident decision-making during the M&A process.

Problem

• Potential software and security vulnerabilities could increase acquisition risk.

• Uncertainty about compliance with GDPR and other regulations.

• Limited insight into secure development lifecycle, automation, and code quality.

• Unknown risks in open-source software and cloud configurations.

Solution

ImagineX conducted a multi-week, end-to-end assessment of the target company’s technology and security posture. This included reviewing web and mobile applications for security, code quality, and compliance with Open API standards. The team assessed the secure development lifecycle, automation processes, open-source software usage, and AWS environment configurations. Penetration testing of mobile and web APIs was performed to identify exploitable vulnerabilities. Additionally, ImagineX reviewed application quality standards pre- and post-release to ensure consistency and resilience. Findings were consolidated into a comprehensive, executive-level report to guide acquisition decisions.

Outcome

• Delivered a detailed assessment report with an executive summary for informed decision-making.

• Identified potential vulnerabilities and compliance gaps before acquisition.

• Validated secure development practices and cloud configurations.

• Provided assurance that the target’s technologies met organizational standards, supporting acquisition confidence.