Today, organizations are increasingly focused on ways to streamline services that will allow them to focus on growing their businesses, and not to be concerned with positioning their companies for an eventual exit strategy. According to Deloitte, “Corporations and private equity firms pin the most blame on external factors, but recognize the need for more effective due diligence and integration to make sure revenue projections materialize.” RadiusPoint and Dexter Global Solutions have partnered together seamlessly, so our customers get the benefits of our deeply integrated services, delivered by two credible companies with a great track record.
At a client meeting, it was mentioned that an acquisition was going to be finalized on January 31st. The client provided RadiusPoint with a list of locations that would be transitioned off to the new company. RadiusPoint was able to identify all of the account numbers applicable to each location…. that was the easy part.
The new company had three months to transition the invoices but they also had six months of support from our client. The first issue started as the RadiusPoint team spent hours trying to get the new company to sign the Transfer of Liability documents. The second issue arose when a small war started between the companies over the phone lines and wireless lines that our client claimed that went with the new company and the new company wouldn’t claim them.
Just a few of the issues:
- Did not utilize RP to renegotiate contracts for decrease and increase in spending
- The buyer did not utilize RP to inventory services being sent over from the seller; identified locations and invoices moved over that were not a part of the deal. $15,000.00 paid that was not part of the sale
For another client, there were so many acquisitions going on that they couldn’t keep up with all of the new services. So how important is it to have an inventory of your telecom and utility services when an acquisition is taking place?
What could not knowing cost you?
- OEM Automotive Client completed 5 acquisitions in the same year
- No inventories completed for any telecom services
- Bills were paid, contracts honored without any type of review
- 25 Toll-Free numbers identified that did not belong to the Client – $1,500.00 per month
- 400 phone numbers moved to the corporate LD account contract rates – $10,000.00 per month
- Multiple lines canceled, DSL identified not needed
Total first-year savings: $1.3MM
For the past two years, there have been multiple projects that RadiusPoint has been able to help with during a merger, acquisition or divestiture for our clients. Being able to be a part of the team at the very beginning of the project made sense and created the fire that is now our Mergers and Acquisitions group.