K N OW T H E N E G O T I AT I O N A N D P O S T - A C Q U I S I T I O N R I S K S A N D C H A L L E N G E S 6
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Telecoms companies are often a very different kind of organisation with a different hierarchy than a software company.
that taking your product or solutions to market can face delays if they threaten existing revenue streams. Other risks include a lack of necessary resources – both monetary, time, and staff-related - to handle merger and post-merger processes. Finding your place in a new hierarchy and establishing your worth within a large organisation may take time. Also, you may be met with unrealistic targets and short-term goals or a lack of organisational focus. These can create widespread uncertainty and dissatisfaction among your employees, as well as for you. Addressing such risks and setting realistic, short- and long-term goals during deal negotiations minimise unforeseen surprises and hindrances to your ability to meet post-acquisition ambitions and targets.
efficient day-to-day running of a company can lead to future difficulties if the acquisition process ends without an agreement. Companies need to work with a regularly updated Plan B of what to do if negotiations break down. If talksendwithadeal, andyoubecomepartof atelecoms company, there are other risks to consider. For example, your team may be split up. Some key employees may be moved to other projects or departments, thereby limiting your efficiency and ability to innovate. As previously mentioned, becoming part of existing organisational structures can be challenging. Not least because it often means losing direct, full control over some decision-making processes. Becoming part of a larger organisation may also, in extreme cases, mean
Department hierarchies, tiers of decision-makers, and need for cross-departmental documentation and approval found within many telecoms may seem bulky and difficult to software companies. However, they exist for a good reason. That said, telecoms’ structure and seemingly pedestrian pace may be a challenge to some software companies, post-acquisition, as their past success can have reliedon being fast-moving and flexible. During negotiations, software company management teams face other risks and challenges. For example, employees may be concerned by ongoing negotiations, which could affect their future. If inter-company communication is mishandled, they may seek employment elsewhere. This loss of focus on the
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