Business readiness

Service Agreements

What are Service Agreements?

A service agreement is a company contract between a service provider and your company, outlining the terms and conditions and covering various aspects such as quality, availability and responsibility of services.

A Service Agreement typically includes:

  • The description and frequency of the service covered under the contract
  • Terms of payment and compensation details
  • Responsibilities and obligations of both parties
  • Confidentiality and privacy obligations to be followed by your company

Why are Service Agreements important for business today?

Having a comprehensive and up-to-date collection of service agreements enables your company to:

  • Ensure compliance with the terms and conditions defined in the contracts
  • Prevent and resolve potential disputes that may arise between you and your service provider

Why is it important for an event tomorrow?

Having a comprehensive and up-to-date collection of service agreements is important for an event tomorrow, as it helps potential investors to:

  • Assess information on the services procured to accurately value your company
  • Identify agreements that prohibit change of control and require replication or replacement
  • Understand where terms in the agreement will mitigate the impact of service failures
  • Plan for smooth functioning of your company post transactions, without delaying the use of existing services

Pros of addressing Service Agreements

  • Provides clarity and transparency on the terms and conditions put in place
  • Enables the management of the company’s obligations under those agreements
  • Ensures third parties are complying with their obligations
  • Faster and more efficient due diligence process

Cons of not addressing this topic

  • Ambiguity in terms and conditions may increase the potential for legal disputes
  • Difficulty in implementing risk management if the terms of service agreements are not readily available
  • Potential disruption of operations if the rights and responsibility of service providers are not considered in transaction planning.

Learn more about company contracts

Get your critical business processes in order

We have over 15 years’ experience helping people get their businesses in order - from helping transact billions in M&A deals and procurement, to running technology that enables board meetings and GRC processes to run smoothly.
Start now for free