Published: 15 May 2024
Software and SaaS customers are often caught by unwanted licensing and contract negotiation surprises when navigating merger, acquisition and divestiture activity. Sourcing, procurement and vendor management leaders must combat these common M&A pitfalls to avoid significant unbudgeted costs.
Software and SaaS vendor contracts often have vague and rigid terms that do not accommodate mergersandacquisitions (M&A) relatedorganizational changes, making the organization pay more than necessary for extra growth, or are completely lacking M&A-friendly terms.
Agreements with software and SaaS vendors do not always address divestitures, which can put the company at financial risk when this M&A event occurs. Software contracts are often negotiated during a divestiture, when the company is in a compromised negotiation position.
Contracts are commonly missing pricing and discount protections as well as basic vendor audit protections, leaving them susceptible to price increases, unable to
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Analysts:
Jan Cook, Dawn Singer, Dawn Hubbard, Calum McDonald
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