Contract Due Diligence
Contract due diligence within a business change context provides all parties involved with answers about contractual risk, limitations and obligations triggered by the actual change event.
Outsourcing deals may be hampered or even aborted by virtue of third party contracts. Reorganisation suddenly does not seem such a good idea when practicalities and costs of Service Delivery are considered. It is not unheard of that merger and acquisition signings are delayed because of costly auto-renewals. Worse yet, post transition, unforeseen costs may become apparent, sometimes several years after the event!
LOCS can help. Our teams are experienced in tracking down contract documents, which may be spread across various businesses and dispersed across different locations. Sometimes documents are kept online only. They may be archived, or even destroyed!
LOCS can help define the due diligence contract parameters under consideration. Parameters differ according to the business change sought.
LOCS compile a fully searchable database of contract clauses against due diligence parameters, enabling key stakeholders to gain instant and valuable insight into their contractual risk, limitations and obligations. This aids informed decision making.
LOCS has an experienced Procurement Support team who can establish effective communication with internal and external stakeholders, in order to achieve a smooth transition and avoid opportunistic stances.