Your Service Provider is Being Acquired. What Do You Need to Know?
When your equipment requires service, you know just who to contact. You know the service will be completed in a timely manner and done correctly. It’s a comforting feeling, right? But what if your favorite service provider is being acquired or merging with another vendor? What does that mean for you? Your main goal should be to gather all the information you need to minimize disruption, smooth the transition, and keep your peace of mind.
It’s time to start your detective work. Contact both entities as soon as possible to get answers to the following questions:
- What’s the reason for the acquisition?
- Whose name will the merged companies operate under?
- What are the acquiring company’s strengths/weaknesses?
- What is the timeline/roadmap for the acquisition?
- Is there an industry peer you can contact for an assessment of the new service provider?
- Will my contract be re-negotiated at the time of renewal or immediately?
- When will the changes go into effect?
- How will the terms of my contract be affected, especially rates and expiration dates?
- Are there any services that will be added to my contract that my current provider did not offer? Will I lose any services I currently receive?
- How do we renew the contract? Is there an auto-renew clause in the new contract?
TIP! Request all new acquisition contracts as far in advance as possible and highlight any changes from your last contract. This will help you avoid surprises and service disruptions later.
- Will my contact for service and/or service levels change?
- Will the process to request, and follow up on, service be different?
- What can we expect with regards to billing changes?
The transition during a merger or acquisition of your service provider may result in some level of disruption. You can plan for this by requesting additional oversight during the adjustment period. Change is never easy, but often is a good thing. Perhaps your new service provider will offer better service levels or streamlined processes that your original service provider was not able to offer. If you plan ahead and gather the right information prior to the transition, you will be well positioned to minimize service disruptions and might even be pleasantly surprised by the change.
For more expert advice as you navigate this type of change in service, contact us.
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