Mergers and acquisitions (M&A) involve significant changes to an organization's legal and contractual obligations, making effective contract management critical to the success of the transaction. Some ways that contract management is important in M&A include:
- Identifying all contracts and obligations that will be transferred as part of the transaction.
- Assessing the risk and value of each contract to determine the potential impact on the organization.
- Negotiating changes to contracts to align with the goals and objectives of the transaction.
- Ensuring compliance with all contractual obligations during and after the transaction.
By prioritizing contract management in M&A transactions, organizations can ensure that they are aware of all contractual obligations and risks and can manage them effectively to achieve the desired outcomes of the transaction.