NakodaX

NakodaX blog/Source Protection·2 min read

When the acquirer wants to see the code

Technical due diligence means sharing source code with a company that may not buy you. Review need not leave an ordinary working copy behind.

NakodaX Marketing team

By NakodaX Marketing team

NakodaX ·

A sealed glass archive suspended between two dark platforms by a fine teal light path.
Diligence should support a real evaluation, with a defined end to access if the deal does not proceed.

A serious acquirer asks to review the code. That is reasonable. It is also a moment when a company can hand a competitor a copy it cannot take back.

The deal may close. If it does not, the question is what remains on the other side.

The leftover copy is the risk

Repository access, a screen share, and a zip in a data room each trade speed for exposure. They do not change what happens once readable code is copied out.

Diligence needs a complete evaluation. It does not need an indefinite, readable handover if the transaction ends.

Share for review, control the release

Source code due diligence works best when the review environment is planned, not improvised. A business can identify the proprietary components that matter most and use a protected release for the review environment. The buyer's engineers can evaluate the product where the seller authorizes execution.

When diligence ends, the seller can change the deployment's access. That applies technical control to the protected components, rather than relying only on a limited repository invitation.

Diligence is more than code

Transactions also involve contracts, financial models, architecture documents, and customer information. Those should have clear recipient, expiry, and revocation decisions of their own.

No control can retrieve details somebody has already copied, photographed, or learned. The value is reducing the ordinary leftover file problem before it begins.

A better transaction posture

A seller should be able to share enough for a serious evaluation without treating a failed deal as an irreversible transfer. The buyer gets a cleaner review process; the seller keeps a defined end to access.

The takeaway

Share properly. Decide what happens when the process ends.

Related product

NakodaX Source Protection

Let vendors and customers build or run software without receiving selected proprietary source code in readable form.

See how it works