HOW SOFTWARE COMPANIES CAN OPTIMISE A TELECOMS ACQUISITION

O P T I M I S I N G S A L E S A N D S AV I N G S S Y N E R G I E S 8

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Getting the best out of joining forces with a large, multinational organisation includes leveraging cost- saving synergies and taking advantage of a telecoms’ existing sales setup.

negotiation. The team is free to analyse data (after signing necessary NDAs) that negotiation parties are otherwise reticent to share and make recommendations for integration processes and targets based on that information. For savings, central areas include choosing what functions to centralise and which to outsource to each company/division in the future setup, management, and reporting structures, as well as operating models. Synergies and savings may extend to your software solutions, where bandwidth and server costs can be among the expenses lowered, post-merger. Consolidating systems can create savings, but it invariably also means spending time and resources on fitting your solutions and code to an existing IT ecosystem.

One area to consider is sales support systems. If the goal for your company’s solutions is entering new markets, cross-selling, or becoming part of sales bundles immediately post-merger, there may be a need for training, new marketing materials, and preparation of sales leads. Telecoms’ sales teams, as well as your own sales team, can be integrated or work together on leads earlier than would otherwise be the case if the groundwork is laid correctly. As is the casewithother areas of the negotiation process, certain information necessary to create the best, fastest possible synergies, post-acquisition, can be hard to share during negotiations – you may, for example, fear it leaves you exposed, should negotiations fail. A clean team can be used for parts of the negotiation process to avoid such issues. A clean team is an entity of experts that are legally separate from both parties in the deal

Increased sales and cost-saving synergies are often among the main drivers for both parties of a deal. The same applies to software – telecoms M&A. Achieving the best results requires early groundwork for post-merger synergies. The process includes looking at sales channels and targets for your software. These avenues can be internal, in which case, there should be clear guidelines for what departments and systems your solutions are aimed toward and what payment structures will govern inter-departmental sales. Customer-facing solutions should seek to define areas such as cross- selling opportunities, as well as direct sales targets and roadmaps.

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