The Contract Review Challenges of Software Companies and How AI Can Help

Running a software company means living in contracts. Every deal signed with a customer, every vendor relationship, every acquisition, and every employee agreement carries obligations that can accelerate growth or introduce costly risks. For companies that operate in vertical markets or acquire multiple businesses under one umbrella, the volume of contracts can quickly become overwhelming.

This is where AI contract review software like goHeather becomes essential. Instead of relying only on manual review, which eats up legal budgets and slows down deal velocity, companies can use automated contract analysis for the first pass of complicated agreements and for low risk boilerplate contracts. By flagging risks early, goHeather helps legal and business teams keep revenue predictable and avoid compliance missteps.

Here is a look at the types of contracts that flow across a software company’s desks every day and how goHeather keeps them under control.

Customer and Revenue Agreements

Recurring revenue is the lifeblood of software companies. From SaaS subscription deals to enterprise license renewals, customer facing agreements determine whether revenue grows predictably or leaks away due to hidden risks.

Typical agreements include:

• SaaS subscription agreements
• License and maintenance renewals
• Professional services contracts
• Change orders and upsells

Each of these documents may look routine, but buried language can significantly affect cash flow. A renewal clause that automatically locks a customer into higher fees without proper notice might trigger disputes. A liability cap that shifts too much risk onto the vendor could create long term exposure. Even small ambiguities in service level commitments can lead to expensive litigation.

goHeather is excellent at taking the first pass on these agreements, surfacing escalation clauses, indemnities, and liability caps that otherwise might be overlooked. For low risk renewals and boilerplate subscriptions, it can handle most of the review on its own, freeing legal teams to focus only on high stakes changes. That results in faster deal cycles and more consistent revenue protection.

Vendor and Supplier Contracts

Behind every software product sits an ecosystem of vendors. These include cloud providers, API licensors, outsourcers, consultants, and IT partners. Each brings its own set of terms, conditions, and obligations. For companies managing dozens of software businesses, that can quickly translate into hundreds of vendor contracts, each with its own risks.

The most common pitfalls are restrictive service level agreements that force the business to meet costly uptime guarantees, termination rights that allow a vendor to walk away at the worst possible time, or compliance obligations buried deep in the fine print that put the company on the hook for liabilities outside its control.

goHeather excels at first pass review of these often complicated vendor agreements, quickly identifying the clauses that matter most. For more routine supplier contracts such as standardized outsourcing agreements or boilerplate API licenses, goHeather can take care of the heavy lifting, allowing procurement and legal teams to focus only on the contracts that truly require negotiation.

Mergers Acquisitions and Corporate Governance

For companies that grow through acquisitions, purchase agreements, transition service agreements, and earn out clauses are constantly in motion. At the same time, governance documents need consistent review to maintain alignment and control.

Key agreements include:

• Purchase agreements
• Transition service agreements
• Earn out terms
• Shareholder agreements
• NDAs for pre deal confidentiality
• Board resolutions

The challenge is speed. Acquisitions move quickly, and lawyers do not always have weeks to dig through every clause. Missing a single earn out trigger, an NDA confidentiality carve out, or a transition obligation can have massive financial consequences.

goHeather helps by automating red flag detection in these complex agreements. It is particularly strong at taking the first pass on long and complicated M and A contracts, ensuring that nothing obvious slips through. For routine NDAs or standard governance documents, goHeather provides consistent and reliable review, catching risky carve outs or missing protections without requiring a lawyer to start from scratch each time.

Employment and HR Agreements

Every acquisition brings people, and with people come contracts. Executive employment agreements, contractor terms, incentive plans, NDAs, and IP assignment clauses all need to be harmonized across the company. If left unchecked, inconsistencies can lead to disputes, lost talent, or IP ownership issues.

Employment agreements also carry jurisdiction specific quirks. Non competes enforceable in one state might be invalid in another. Incentive plans can conflict with securities regulations. Contractor agreements that fail to properly assign IP can leave the company exposed if a contractor walks away.

goHeather scans these documents for exactly those problems. It is particularly effective at providing the first pass of detailed executive contracts, surfacing non competes, identifying conflicting IP terms, and flagging jurisdictional quirks. For lower risk contractor agreements or standard NDAs, it can quickly clear the boilerplate, giving HR and legal teams more time to focus on the outliers that matter most.

Operational and Compliance Documents

Software companies also face a mountain of back office paperwork that keeps the business running.

• Data processing agreements for GDPR, HIPAA, or other privacy laws
• Insurance policies
• Office leases
• General corporate contracts

While they may not drive revenue, these documents often carry regulatory and financial risks. A poorly worded data processing agreement could expose the company to fines under GDPR. A lease renewal clause might lock the business into above market rates for years. Insurance contracts can contain exclusions that gut coverage when it is needed most.

goHeather helps legal and operations teams stay ahead of these risks by providing consistent first pass review of everything from long data processing agreements to routine insurance contracts. For low risk boilerplate documents, it can handle review almost entirely on its own, giving teams peace of mind without draining resources.

Why This Matters

For software companies, contract review is not just a legal chore. It is a growth driver. Missed risks can derail acquisition strategies, stall revenue, create compliance headaches, or erode company value. Reviewing every contract manually is both expensive and slow.

AI contract review software offers a new model. By automating the first pass on complicated contracts and fully handling low risk boilerplate agreements, goHeather helps companies:

• Close customer deals faster while protecting recurring revenue
• Negotiate vendor contracts from a stronger position
• Accelerate acquisitions with confidence in the fine print
• Harmonize employment agreements across jurisdictions
• Catch compliance risks before they scale

Instead of bottlenecks, contracts become a competitive advantage.

The Bottom Line

Software companies, especially those operating in vertical markets or pursuing an acquisition strategy, are drowning in contracts. From customer renewals to vendor agreements, from M and A deals to employment NDAs, every agreement carries risks that affect revenue, operations, and compliance.

goHeather AI Contract Review turns that flood of paperwork into actionable insights. By excelling at first pass review of complex contracts and handling low risk boilerplate agreements efficiently, it gives in house teams more time to negotiate, strategize, and grow.

Contracts will never go away, but with the right AI powered contract review software, they do not have to slow you down.