Published: 17 July 2024
During mergers and acquisitions, IT vendors may seek product or contractual changes negating carefully negotiated terms. IT sourcing, procurement and vendor management leaders who proactively negotiate key terms at points of leverage reduce risks to the organization during and after vendors’ M&A.
When an IT vendor is sold or sells its product to another vendor, the acquiring vendor attempts to govern usage by terms that are beneficial to them and will try to move clients to new contract terms.
Future vendor mergers, acquisitions and divestitures (M&A) are often overlooked or not prioritized during initial contract negotiations. This can result in the need to renegotiate terms when you don’t have leverage.
Negotiate key terms proactively in new IT agreements to minimize risk if your vendor is involved in M&A. Review terms in current agreements to determine which to renegotiate now, which are
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