Avoiding the Acquisition and Divestiture Pitfalls …– when it comes to transitioning the telecom and utility invoices and services
Avoiding the Acquisition and Divestiture Pitfalls – when it comes to transitioning the telecom and utility invoices and services
In this final part of our three part series (Read Part 1 & Part 2 here) the tasks of transferring the liability for the telecom and utility invoices will be covered. Perhaps one of the most confusing steps of an Acquisition or Divestiture, the time that is involved in transferring the liability of these invoices takes weeks and in some cases months.
Knowing if your company plans to transfer the accounts over or do they plan to cancel the accounts and establish new service is the first hurdle to identify. For services such as utility meters or trash service, this may be the chosen path, however this is almost never the chosen path with telecom services. This is typically because the telecom services take weeks for installs to occur and would involve phone system changes which involves another vendor.
So what steps can the team take to ensure that the Transfer of Liability (TOL) happens on schedule?
1. Contact each vendor for the Transfer of Liability forms for each account.
2. Complete the forms with specific information required by the vendor.
3. Provide forms to the contact at the company that is relinquishing the account to the company that is acquiring the account.
4. Once forms are returned, provide the forms to the company contact for signatures.
5. Gather signed forms and provide to vendor
6. Follow up on TOL date to ensure services have been transferred.
7. Ensure that billing address and Tax ID number has been changed to the correct information.
Taking the time to fully understand what your company plans to do with the companies that are acquired or divested is the first step in savings time and money during the transition process. Having a project team on both sides to handle each step of the process can eliminate the confusion and finger pointing that sometimes can occur when the project goes beyond the timeline and cost overruns occur.
RadiusPoint handles Acquisitions and Divestitures for our clients around the globe and enlists our in-house team to make these transitions a smoother process for both sides. Our team can be involved at the very outset of the project to ensure that timelines are met and the services and invoices are transitioned. All of this work is done to eliminate the need of the current Accounts Payable staff to take on the extra work and to eliminate overcharges due to the invoices not being transitioned properly. Let RadiusPoint help your company Avoid the Pitfalls of your Divestiture.