Companies that are involved in Acquisitions and Divestitures can experience many pitfalls if the transition is not well planned and fully executed. Transitioning the telecom and utility invoices can create a huge time draw for any company and if not transitioned properly can cost both companies a lot of money.
A Client sold a division of their organization that included telecom, long distance, wireless, electric, gas, water/sewer and trash invoices. The company that acquired the locations enlisted the services of RadiusPoint to handle the transition and to take over the monthly invoice and service management once the services were transitioned.
RadiusPoint worked to complete the Transfer of Liability on the invoices by obtaining the necessary documents for both companies to execute and then worked with the vendors to ensure that the documents were validated by the vendor. Once the services were transitioned, RadiusPoint validated the invoices to ensure that the services were transitioned on time and at the correct rates.
The team at RadiusPoint had to work with the vendor’s account team on the large consolidated invoices to transition the sub accounts over to a new account. The team was able to identify the service inventory billed under each subaccount and then worked with the account representative to get a new account set up for the services to move under.
RadiusPoint was able to avoid early termination fees and shortfall penalties because a mid contract negotiation took place for the existing company which reduced the Minimum Annual Revenue Commitment (MARC).
One of the areas of savings involved the purchasing company in which they avoided the long distance being billed at a casual rate due to the RadiusPoint team identify the phone lines that would be moving to their contract. The account rep was notified of the new numbers to add to the corporate account and the PIC and LPIC was changed after the long distance rep acknowledged the addition to the account.
Both companies saved over 1,000 man hours by enlisting the assistance of the RadiusPoint team to plan and execute the acquisition and divestiture. Being in the unique position of working for both companies allowed for the avoidance of the many pitfalls that can occur during this process.
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.