CUSTOMER CHALLENGE

How do M&As impact our software licensing?

Mergers, AcQuisitions & Divestitures

An M&A increases licensing complexity. Let's simplify it, together.

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How do we ensure compliance post-merger?

Ensuring compliance post-merger involves a strategic approach to understanding and integrating the software assets of both entities. A comprehensive audit of existing licenses is essential to identify any overlaps or gaps, followed by negotiations with vendors to realign licenses according to the new organizational structure. It’s important to be aware of specific terms and conditions in existing licenses that might affect consolidation efforts. Engaging with legal professionals or experts in software licensing can provide valuable guidance through this complex process, ensuring a compliant and efficient transition while optimizing software assets.

What happens to licenses during a divestiture?

During a divestiture, software licenses may need to be re-evaluated and potentially renegotiated, depending on the terms and conditions set forth by the licensors. It’s common for licenses to be tied to specific entities or usage scopes, which could change in the context of a divestiture. Rest assured, with careful planning and open communication with your software vendors, transitions can be managed smoothly to ensure continuous compliance and operational integrity. Our team is here to guide you through this process, ensuring that your software licensing aligns with your new organizational structure.

How can we reduce license compliance risk transfer?

Whether you are the acquirer or the acquired, license compliance risk is a concern for both parties. The acquirer faces the problem of ensuring that all assets are legally compliant to avoid future legal and financial repercussions, which necessitates a meticulous due diligence process, including a detailed examination of all software licenses. The acquired company should proactively manage its licenses to maintain compliance, to reduce the need for equity holds or indemnities that might otherwise be required to offset potential acquired risks.

How do we handle audits during the M&A process?

Handling audits during the M&A process requires a strategic approach to ensure compliance while safeguarding your interests. It’s crucial to thoroughly understand your legal and contractual rights related to software licensing before engaging in any audit activities. To maintain focus and avoid unnecessary complications, limit the scope of audits to the specific entity involved in the merger or acquisition, ensuring it does not extend to subsidiaries that are not legally part of the transaction. By taking these steps, you can navigate the audit process effectively, minimizing disruptions and maintaining a strong stance throughout the M&A journey.

What are the risks of inheriting compliance issues?

Inheriting compliance issues during M&A can seem daunting, but it’s a manageable aspect of the integration process. These risks often include potential legal penalties, unforeseen costs, and operational disruptions. However, with thorough due diligence and strategic planning, these challenges can be effectively addressed and resolved. Rest assured, with the right approach and expert guidance, your organization can navigate these waters smoothly and ensure a seamless transition.

We are getting audited right after an M&A.

Mergers and Acquisitions often signal to vendors an opportune moment to conduct audits, as they’re aware that companies are in a transitional phase, making them more susceptible to compliance slip-ups. It’s crucial to understand that this strategic timing isn’t coincidental; vendors might see it as a chance to capitalize on any oversight during the restructuring process. However, with diligent preparation and a clear understanding of your existing licenses, you can navigate this audit smoothly and maintain compliance. Rest assured, with the right approach, these audits can be managed effectively, ensuring your organization remains on solid footing through the M&A transition.

We help you put the pieces together

We help companies can significantly reduce software licensing costs associated with M&A activities, avoid compliance risks, and enhance the value of the entity in play.

CentralizeD Contract Management

Establish a centralized contracts management office focused exclusively on contract separation. This controls outward communication and reduces legal involvement.

Leverage Existing Agreements

Utilize the agreements already in place, especially if they were for a larger enterprise. This reduces the need for new software and IT agreements before Day 1, enhancing the buying power of the combined organization.

Assess IT Portfolio

After the divestiture or acquisition, conduct a full assessment of the IT portfolio, ideally using an automated process. This helps identify potential software for transfer, renegotiate or source new agreements as business needs evolve, and reduce licensing support costs.

Negotiate with Vendors

Engage in individual negotiations with vendors to maintain the useful value within existing licenses, obtain cost-free license transfers, and estimate future licensing needs to avoid overbuying and inflated costs.

Implement Leading Practice Approaches

Adopt leading practice approaches for IT project teams to identify software needs, obtain Right to Use transition periods to mitigate compliance risks, and substantially reduce Day 1 costs.

CentralizeD Contract Management

Establish a centralized contracts management office focused exclusively on contract separation. This controls outward communication and reduces legal involvement.

Leverage Existing Agreements

Utilize the agreements already in place, especially if they were for a larger enterprise. This reduces the need for new software and IT agreements before Day 1, enhancing the buying power of the combined organization.

Assess IT Portfolio

After the divestiture or acquisition, conduct a full assessment of the IT portfolio, ideally using an automated process. This helps identify potential software for transfer, renegotiate or source new agreements as business needs evolve, and reduce licensing support costs.

Negotiate with Vendors

Engage in individual negotiations with vendors to maintain the useful value within existing licenses, obtain cost-free license transfers, and estimate future licensing needs to avoid overbuying and inflated costs.

Implement Leading Practice Approaches

Adopt leading practice approaches for IT project teams to identify software needs, obtain Right to Use transition periods to mitigate compliance risks, and substantially reduce Day 1 costs.

CUSTOMER CHALLENGE

How do M&As impact our software licensing?

Mergers, AcQuisitions & Divestitures

An M&A increases licensing complexity. Let's simplify it, together.

We help you put the pieces together

CentralizeD Contract Management

Establish a centralized contracts management office focused exclusively on contract separation. This controls outward communication and reduces legal involvement.

Leverage Existing Agreements

Utilize the agreements already in place, especially if they were for a larger enterprise. This reduces the need for new software and IT agreements before Day 1, enhancing the buying power of the combined organization.

Assess IT Portfolio

After the divestiture or acquisition, conduct a full assessment of the IT portfolio, ideally using an automated process. This helps identify potential software for transfer, renegotiate or source new agreements as business needs evolve, and reduce licensing support costs.

Negotiate with Vendors

Engage in individual negotiations with vendors to maintain the useful value within existing licenses, obtain cost-free license transfers, and estimate future licensing needs to avoid overbuying and inflated costs.

Implement Leading Practice Approaches

Adopt leading practice approaches for IT project teams to identify software needs, obtain Right to Use transition periods to mitigate compliance risks, and substantially reduce Day 1 costs.

CentralizeD Contract Management

Establish a centralized contracts management office focused exclusively on contract separation. This controls outward communication and reduces legal involvement.

Leverage Existing Agreements

Utilize the agreements already in place, especially if they were for a larger enterprise. This reduces the need for new software and IT agreements before Day 1, enhancing the buying power of the combined organization.

Assess IT Portfolio

After the divestiture or acquisition, conduct a full assessment of the IT portfolio, ideally using an automated process. This helps identify potential software for transfer, renegotiate or source new agreements as business needs evolve, and reduce licensing support costs.

Negotiate with Vendors

Engage in individual negotiations with vendors to maintain the useful value within existing licenses, obtain cost-free license transfers, and estimate future licensing needs to avoid overbuying and inflated costs.

Implement Leading Practice Approaches

Adopt leading practice approaches for IT project teams to identify software needs, obtain Right to Use transition periods to mitigate compliance risks, and substantially reduce Day 1 costs.

Let's talk about your M&A

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