Using Open-Source Software Audit Reports to Build Trust with Potential Buyers

In the current climate of tech due diligence, transparency isn’t just nice to have—it’s non-negotiable. And for companies that rely on open-source software (OSS), one of the most underutilized assets in building buyer confidence is the OSS audit report.

Whether you're preparing for an acquisition, investment round, or major customer deal, the way your product integrates open-source software can raise questions—or inspire confidence. The difference often comes down to documentation and disclosure. That’s where OSS audits come in.

What is an OSS Audit Report?

An OSS audit report is a structured analysis of the open-source components used in a software project. It typically includes:

• A software bill of materials (SBOM)
• License types and obligations
• Known security vulnerabilities
• Potential compliance issues
• Remediation actions, if any

These audits are often conducted by third parties using tools like FOSSA, Snyk, or Mend (formerly WhiteSource), innovative methods like Fossity, or through internal tooling and manual verification.

Why It Matters to Buyers

Open-source isn’t a red flag—in fact, it’s a signal of modern, efficient development practices. But unmanaged open-source is. Buyers want to know:

• Are you tracking and managing dependencies responsibly?
• Are you at risk of license non-compliance?
• Are there any vulnerabilities lurking in outdated packages?
• Do you have a process for updates, patches, and disclosures?

A clean, current OSS audit answers these questions proactively. It reduces legal and operational uncertainty and speeds up technical due diligence.

Trust Through Transparency

Think of an OSS audit like a credit report for your codebase. It doesn't just reveal risks—it shows how you're managing them. A well-maintained OSS report demonstrates:

• Awareness of legal obligations (GPL, MIT, Apache, etc.)
• Active management of vulnerabilities
• Mature software governance

It’s particularly impactful in industries where software integrity is tied to safety, security, or regulatory compliance—think fintech, healthtech, or defense.

In fact, we’ve seen buyers shift from a position of caution to active excitement once they realize a target company not only uses OSS—but governs it well. It reflects broader maturity.

What to Include in Your Disclosure

If you’re getting ready to share OSS audit results, here’s what you should include in your buyer-facing documentation:

• A summary of all open-source components (ideally in SBOM format)
• License breakdown and any obligations fulfilled (e.g., attributions, modifications)
• Security scan results with mitigation notes
• Notes on governance processes (e.g., regular audits, update policies)

Make it easy to understand. Use visual summaries or tiered detail levels. The goal isn’t to overwhelm—it’s to communicate confidence.

When to Start

Early. Ideally, you’re running OSS audits as part of your CI/CD pipeline. But even if you’re doing this retrospectively ahead of a deal, it’s worth it. A last-minute OSS review is better than none—and it still sends a strong signal of responsibility.

The Competitive Advantage

As open-source becomes the backbone of modern software, knowing how to manage it becomes a strategic asset. Companies that treat OSS audits as part of regular hygiene—not just a due diligence checkbox—position themselves as trustworthy, thoughtful, and enterprise-ready.

In markets where buyers have many options, trust becomes the differentiator. And trust is built on clarity.

Note: The preceding text is provided for informational purposes only and does not constitute legal nor business advice. The views expressed in the text are solely those of the writer and do not necessarily represent the views of any organization or entity.

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