ARTICLE
6 September 2024

Technology Acquisitions Can Boost Companies' Growth – Or Cause Them To Fail

CS
Castren & Snellman Attorneys

Contributor

Castrén & Snellman is a law firm of 265 people based in Helsinki, and in other parts of the world we work with an extensive international network of law firms. We are a trusted advisor in mergers and acquisitions, disputes and other specialised fields of business law.
Digital transformation is one of the greatest drivers of our time, and due to the rapid pace of development, digitalisation has shifted from support functions to the core of the business.
Finland Corporate/Commercial Law
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Digital transformation is one of the greatest drivers of our time, and due to the rapid pace of development, digitalisation has shifted from support functions to the core of the business. It has been estimated that the money spent on carrying out the transformation will double from the current two trillion to four trillion dollars by 2027.

This all materialises as technological transformation projects and system acquisitions. At best, successfully implemented transformation boosts new growth in the company while delays, dysfunctional software and overspending the budget can even jeopardise the business operations, particularly given that more and more customer interfaces are digital.

When companies undertake a transformation project, they should therefore reserve enough time and resources for it. External experts can also help evaluate the project and any related risks. If the project is a failure, related disputes can end up in court.

One factor that is essential for a well-implemented transformation project is a carefully drafted contract. A functioning contract provides flexibility and describes the targets, timetable and responsibilities as tangibly as possible for the duration of the project but also for the use of the new solution after the project. When the contract is in order, it is easy to monitor its execution. At best, the contract also provides a solid foundation if any disputes arise.

Advance planning is often a key to favourable results in disputes as well. When the contract is clear, it has been complied with on both sides and the organisation is prepared for any disputes, the project has better chances of success. In a best-case scenario, the transformation project is so skilfully planned, organised and led that it is not necessary to even consider leaning on these precautions.

The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.

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