Monday, April 23, 2007

VoIP Growth - Primarily Through Acquisition

According to this article in BizJournals, the way for a VoIP Provider to grow is through acquisitions.
The most expeditious way to accomplish growth will be through acquisition, rather than by growing organically. By acquiring existing competitors in the VoIP market, a company can increase revenues and earnings, typically on a more cost-efficient basis. Through acquisition, a company can acaquire existing revenue-generating customers and a local sales force, and avoid startup costs and delays in generating revenue. The first movers in this likely consolidation have the best chance of long-term success.
And apparently, Nuvio is reading this, since they are supposedly in Roll Up Mode (according to this Biz Journal article). The writer even lists a 7 part list for successful acquisition:
  1. Identify an Acquisition Strategy
  2. Get Access to Capital
  3. Good Management is key
  4. Incent Success (give incentives to key people to make it work)
  5. Do your Due Diligence
  6. Structure the Deal as a win-win, including the tax implications
  7. Integration of the Acquired entity and customers

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