Advice on the acquisition of targets for a company in the telecommunications sector
Summary
The Telecommunications market has been consolidating rapidly in recent years and in the phone and expense management market it has become clear that companies are consolidating into large groups or specialising in a very specific niche.
Because of this fact, the company TelecomExpense* and its shareholders decided to go to the market to look for several companies that would complement and improve their service offerings.
ST strategy advised on the acquisition of several companies.
Market consolidation
Acquisitions
Integration
The complete story
Opportunity
Once the need to grow, not only organically, but also inorganically, was detected, the company designed, together with ST strategy, what type of companies could be acquired. Always under a standard of KPIs that will mark the minimums to be able to make a potential offer.
The company was searching advice at this stage of the process regarding its consolidation in the market by acquiring new companies.
Recommendations
Based on the analysis carried out by ST strategy, work was done on the acquisition of companies that would allow the expected growth.
- Purchase strategy: Work on the type of company to be acquired, always previously analysing the customer and the desire for synergies, complementarity or new lines to be covered.
- Screening and process: Screening was carried out based on the previous point, identifying potential targets and the rationale for each. The company was supported in contacting potential targets, initial meetings to assess feasibility, business valuation, the offer presented, the negotiation process and the clauses required for the final agreement.
* The confidentiality of our clients is a priority of the company. Although we have changed their names, the information is real