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K N OW WH AT Y O U C A N E X P E C T T O G A I N F R OM A T E L E C OM S C OM PA N Y
Whenconsideringwhether anacquisitionbyatelecoms company is the right move, it is vital to knowwhat your company can expect to gain.
It should be noted that there can be a lot of T’s to cross and I’s to dot before gaining access to said expertise, data, or customer base. Telecoms adhere to strict compliance and data protection regulations, especially since the introduction of new data protection legislation like GDPR. Furthermore, they are businesses which, due to their large size, generally move at a somewhat more pedestrian pace than is the modus operandi for most software companies. In the immediate time after a signed agreement, both parties in a software —telecoms acquisition can leverage other synergies to streamline business processes and lower costs in areas like marketing and sales.
can ease access to markets that could otherwise have been too expensive and difficult for your company to pursue. For back-end solution developers, telecoms’ extensive technical experience and expertise can be a veritable gold mine. In both instances, telecoms have a lot of experience with what does and does not work. That applies to both technical aspects (like scaling your current solutions), as well as ongoing R&D and business areas such as marketing, sales, and customer interaction. Another potential benefit is data related. Most telecoms have vast troves of customer data, which can potentially be beneficial to your company post acquisition.
The list of potential benefits is long. Telecoms can offer access to a vast organisational and contact network, in house expertise, and more. Many software companies considering potential acquisitions are looking for ways to take their company—or solutions—to the next level. In such a case, telecoms provide an excellent alternative to traditional funding alternatives like VCs. Telecoms can, for example, sometimes value ongoing R&D over short-term profitability targets. If your solutions or services are customer-facing, access to telecoms companies’ substantial existing customer base is one of the most obvious advantages. Many telecoms also have robust international setups, which
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