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For example, software companies should be aware that they are an increasingly important M&A focal point for telecoms. Increased efficiency for existing servic- es and building out the potential of future services, such as 5G-related offerings, are among the driving factors. Telecoms are also seeing increased competition, especially from technology companies, and a need to diversify product portfo- lios. Furthermore, Covid-19 creates opportunities for acquisitions of distressed high-quality targets at advantageous rates. Such companies can be integrated into, or combined with, existing divisions and business units or operated as new stand-alone units. Those are some of the reasons why we expect to see a lot of software-related M&A from telecoms in the coming years. BDO has offices in more than 160 territories and experts advising companies throughout the telecoms and technology sectors, including many software companies. We advise companies in both industries on a wide array of business, audit, and tax-related issues, including mergers and acquisitions. Our indus- try experts have extensive expertise on how to negotiate and structure deals, as well as practical experience from working in both sectors. They know the thought processes, tactics, and granular details of what it is like to sit on either side of the negotiation table first-hand. For the full scope of the insights presented in this guide, we recommend that you contact your local BDO office or us to hear more.
Software companies and telecoms companies find themselves confronted with new challenges and opportunities. Covid-19’s impact creates a need for reacting to urgent business threats, such as cash flow and liquidity issues. Accelerating digital transformation and integrating new technologies while ensuring supply chain resilience are other areas most must prioritise. Simultaneously, companies and industries are coming to grips with a slowly emerging ‘new normal,’ which could be rich in opportunities to realise their companies’ full potential – if ap- proached correctly. BDO has developed the RETHINK model as a framework to help companies navigate what is, in many ways, unchartered territory. We offer companies a full range of financial and advisory services to assist them react to Covid-19, build up resilience and realise their full potential in the wake of the on-going global pan- demic. For software and telecoms companies, the way to reach that full potential may lie in joining forces. For software companies, a telecoms acquisition can lead to many benefits and opportunities inside organisations primed for growth. COVID-19 has increased demand for telecommunication services such as remote working and home en- tertainment, and expanded the use of broadband services, voice traffic, and video streaming. These changes are causing a shift in telecoms companies’ investment strategies around network reliability and future 5G rollouts. However, software companies risk seeing increased growth, innovation boosts, access to new customers, and possible business synergies being negated by chal- lenges before, during, and after an acquisition process. Insights about what to expect from an acquisition, how to optimise the acquisition process, and get the results you are hoping for are crucial to avoid such disappointments.
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