Softjourn

3-Week Code Audit: Enabling Confident Acquisition Through Technical Due Diligence

Our comprehensive code audit provided critical insights that enabled our client to proceed with their acquisition with full confidence in the technical foundation.
ABOUT THE CLIENT:
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Project:Code Audit for Pre-Acquisition Assessment
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Industry:Finance
Date_iconClient since:
2024
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Headquarters:United States
The Challenge

The client needed a comprehensive technical assessment of their acquisition target within a tight timeline to ensure informed decision-making. They required complete transparency around open-source licensing compliance and a thorough evaluation of code quality, security, and scalability across a complex microservices architecture.

The Solution

Our multi-disciplinary team conducted an exhaustive audit using custom scripting and AI-assisted analysis to evaluate thousands of dependencies across the platform's microservices. We implemented creative workarounds for access limitations and delivered a comprehensive assessment covering frontend architecture, backend services, security posture, and performance optimization opportunities.

The Benefits

Our comprehensive audit enabled confident acquisition decision-making by providing complete technical visibility and clear optimization roadmaps. The client gained:

  • Complete risk mitigation and strategic technical roadmap
  • Full licensing compliance across all dependencies
  • Performance and security optimization insights
  • Transparent partnership approach

Introduction

Our client, a payroll reporting software company, identified an opportunity to expand their capabilities through a strategic acquisition. However, they needed a comprehensive technical assessment of the target platform before proceeding.

The acquisition candidate was a JavaScript-based solution that would complement the client’s existing offerings, but given the complexity of the microservices architecture and the importance of the investment, they sought an independent third-party evaluation. 

This client chose Softjourn for our deep expertise in code auditing, modern web technologies, and proven track record of delivering thorough technical assessments within tight timelines. 

With their acquisition timeline requiring a decision within weeks, they needed a partner who could quickly evaluate code quality, security posture, licensing compliance, and scalability potential across the entire platform.

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The client was happy with the code audit we performed and the report we completed.

"I appreciate everything you've done and all the good work you've completed. We really appreciate it."

The client’s VP of IT

As a strategic technology leader, the client wanted to ensure complete transparency around the open-source licensing landscape of their potential acquisition. They recognized the importance of understanding all licensing implications and ensuring full compliance with open-source library usage requirements.

They also needed to complete this assessment quickly to meet their acquisition timeline, but without compromising on thoroughness. The evaluation needed to cover code quality, security vulnerabilities, performance characteristics, and scalability potential - all within a short timeframe.

Additionally, the target application was built as a microservices solution with multiple services using different packages and dependencies. This architecture complexity meant that a holistic assessment required analyzing numerous interconnected components and consolidating findings across the entire ecosystem.

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The Solution

Our team assembled a comprehensive audit approach tailored to the client's specific needs and constraints. We deployed a multi-disciplinary team, including a Senior Frontend Developer, Senior Backend Developer, Senior DevOps Engineer, Solution Architect, and a Project Manager, to ensure thorough coverage across all technical domains.

Comprehensive Dependency Analysis

Given the client's focus on comprehensive due diligence, we conducted an exhaustive analysis of all dependencies across the target platform's microservices architecture. Using custom scripting and AI-assisted analysis, we processed and consolidated dependency information from multiple services to create a holistic view. We analyzed thousands of packages across multiple components, providing detailed licensing breakdowns and confirming no restrictive licensing terms.

Strategic Workarounds for Access Limitations

Since we couldn't access the acquisition target's live application directly, we implemented creative solutions to gather performance data. We requested live demonstrations from the target company's development team and had them record network requests during these sessions, allowing us to analyze real-world performance characteristics of the platform our client was evaluating without compromising security.

Multi-Layered Code Quality Assessment

Our audit covered multiple critical areas:

Frontend Analysis: We reviewed the React-based frontend, identifying architectural inconsistencies, direct Ant Design component usage that could complicate future upgrades, and opportunities for better state management implementation.

Backend Evaluation: Our assessment of the Node.js backend services revealed good overall code quality while highlighting areas for improvement in error handling, input validation consistency, and DynamoDB operation optimization.

Security Assessment: Using OWASP Top 10 as our framework, we conducted a comprehensive security analysis, complemented by SonarCube SAST results to identify potential vulnerabilities.

Performance Analysis: Through code review and network request analysis from recorded demos, we identified optimization opportunities, including several requests that could benefit from performance improvements.

Technical Debt Identification

We identified areas where dependency updates could enhance the platform's long-term maintainability and security posture. For example, we found opportunities to modernize several key framework components that would benefit from updates to current stable releases.

We provided detailed upgrade paths and effort estimations for each outdated dependency, helping the client understand the investment required for modernization if they were to proceed with the acquisition.

 

The Benefits

Our comprehensive code audit delivered significant value to the client's acquisition process, providing the technical insights needed for confident decision-making. The assessment gave them complete visibility into their potential investment while identifying clear opportunities for future enhancement. 

Key benefits included:

1. Risk Mitigation and Informed Decision Making

Our audit enabled the client to proceed with their acquisition while having complete visibility into the technical landscape. We identified opportunities for enhancement and provided clear paths for optimization, helping them plan their technical roadmap effectively.

2. Clear Technical Roadmap

Beyond identifying opportunities, we provided prioritized recommendations and detailed upgrade paths. Our report included specific guidance on modernizing components, with framework upgrade strategies and enhancement recommendations.

3. Licensing Confidence

Our comprehensive dependency analysis addressed our client's focus on thorough due diligence. We provided complete visibility into thousands of packages across the platform, categorizing licenses and confirming full compliance with open-source requirements.

4. Performance Optimization Insights

Through our analysis, we identified opportunities for performance optimization, including more efficient service calls, enhanced caching strategies, and database operation improvements. These insights provided a clear path for post-acquisition performance enhancements.

5. Security Posture Assessment

Our OWASP Top 10 evaluation revealed strong security practices while highlighting opportunities for enhancement, including dependency modernization and improved monitoring capabilities.

6. Transparent Partnership Approach

Working with Softjourn provided the client with more than just a technical report. Our collaborative approach included working sessions with the development team, ensuring we understood architectural decisions and could provide contextual recommendations rather than generic findings.

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Conclusion

The project was completed successfully within three weeks, meeting the client's tight acquisition timeline while delivering the comprehensive assessment they needed.

Our audit revealed that the target platform had solid foundations and good code quality - providing a strong foundation for future development. Most importantly, we confirmed full licensing compliance and identified no blocking issues that would impact the acquisition.

Armed with our comprehensive assessment, our client proceeded confidently with their acquisition, having a clear understanding of both the platform's strengths and the technical investments required for long-term success.

Ready for your next acquisition or technical due diligence? Softjourn's comprehensive code audit services provide the technical insights you need to make informed decisions, mitigate risks, and plan for successful integration.

Partnership & Recognition

Softjourn's IAOP 100 award
Intix Member
Microsoft Gold Partner
Xamarin Authorized Consulting Partner
Monax Parntership
Softjourn in the Inc. 5000 list

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