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K N OW WH AT Y O U W I L L L I K E LY G A I N A C C E S S T O – A N D WH E N
There is great potential associated with an acquisition by a telecoms company, but you should not assume that you will be handed the keys to the kingdom—at least not straight away.
Being part of a big organisation also means that there will be competition for available resources and expertise. Your company may, for example, have quick access to the telco’s sales, marketing, and PR expertise to enter a new market as a post-acquisition goal. Once the acquisition process is completed, you may find yourself at the back of a long queue of other departments wanting access to the same, sparse resources. During the acquisition negotiation process, your company should seek to lay out a road map for what internal services you are looking to access post- acquisition – as well as when. Detailing best and worst-case scenarios for the allocation of desired resources will help identify how various scenarios can affect your ability to reach your – and the telecoms’ - goals for the acquisition.
advantage of their vast troves of data. In other words, you can generally count on access—albeit perhaps a little slower than you may be expecting. Similar issues can affect other areas, as you become part of a large organisation with many more interconnected parts. Currently, some of those parts may be in a state of flux, as telecoms work to optimise costs, strengthen capacity, and work out how Covid-19 may affect the roll-out of new technologies, including 5G networks. These considerations may, in turn, influence the speed of roll-out or integration of your solutions. This can in some cases be linked to how your services and solutions can potentially lower revenues in other parts of the business—a situation that could lead a telecoms company to delay roll-out or limit your solution’s access to specific markets in the short term.
Telecoms companies need to balance opportunity and risks concerning business decisions that can affect other parts of their organisation, as well as compliance with current and coming rules and regulations. Covid-19 has dramatically altered the risk landscape, as detailed in the BDO Global Risk Landscape 2020 report. BDO is working closely with our clients on addressing those changes. Our first-hand impression is that consolidating and accelerating digital transformation of existing business operations are among the immediate priorities The perceived risks and ongoing risk mitigation efforts may, in turn, affect how quickly you will gain access to internal resources. For example, it may influence access to a telecom’s data stores. However, one of the main reasons behind many telecoms’ acquisitions of software companies is their desire to better leverage and take
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