Mergers and Acquisitions

In my experiences, this topic has the power to take on a life of it's own.  I have built quite a history in helping clients with this task so I speak from a place that is quite familiar to me.  There are a few acronyms out there that are used to refer to this function;  TOO, TBO, 1404: Assumption of Contractual Obligations to name a few.  This is simply a document that is signed by both parties (outgoing customer and incoming customer) to acknowledge the approval of the release of your services to another party.  It sounds real simple and it is, logically speaking. 

Reality however is a different story.  As long as you go in with the understand that it could take anywhere from 3 to 6 months for the changes to take effect with the vendor, then you have not set any unrealistic expectations.  The changes could take less time, in which case you're laughing. 

Some key points for you to know:

1. A Business Credit Form may need to be filled in by the new customer if they do not currently have any services with the vendor.  This takes time; plan for it.
2. Some smaller incumbents may not be as strict with their requirements and a simple letter on company letterhead from both parties stating the release and the acceptance of the services is sufficient for the transfer to take place.
3. Consider all of the services and ensure that you have a complete list of what is being signed over.  Don't assume that the vendor will know which of your services are being transferred.
4. Include a separate letter advising the vendor which person is authorized to complete the changes on your company's behalf  otherwise, the person who has signed the documents will be the person who will be notified/called with all of the subsequent questions the vendor may have.  If your CFO/President signed the release, then they will be getting the calls.  I think you get where I'm going with this.  This is when your letter authorizing your Agent to act on your behalf will come in very handy.  They will manage the transfers for you which will be all transparent to you.
5. Some vendors will not accept the transfers unless and until the account is paid to current.
6. Some vendors will not prorate the charges, so if you sign off on the transfer to be completed mid month of your billing cycle, you will then need to discuss and work out any prorated charges with the new customer.
7. Ensure that all of the documents are properly filled in and legible.  This may cause unnecessary delays since some vendors are more particular than others on the completeness of the documents.
8. Make sure that you know who all of your vendors are.  You may have a different vendor for your long distance services than from your local access services or managed services.
9. It is important to know what services/contracts will expire or no longer be provided with the transfer to a new customer.
10. A deposit may be requested of the new customer.
11. Some vendors will charge for the transfer to be completed.  Much like placing any other programming order with the vendor.  Typically the new owners will see this charge on their first invoice.

I always discover new challenges when completing these documents on behalf of my customers.

My motto is:  BE PREPARED.