The telecommunications industry continues to see wide-spread growth and expansion. The growing reliance of consumers on mobile devices is the key driving factor for the industry as a whole. Companies across all industries are seeking to use mobile platforms to enhance relationships with their customers. Technology and services that enable productivity solutions for people and businesses have been particularly successful. We have seen increasing utilization of cloud technology particularly among SMBs adopting cloud storage services.
Despite the general health of the industry, there are a few key challenges facing companies in the telecom industry. Consumers are extremely fearful of their private information being hacked and there is increasing pressure for carriers to devote resources toward ensuring safety and security. As more devices come on the market with remote interactivity and telematics features, the need for wireless connectivity rises. This rapidly growing demand for wireless will continue to strain network capacity and may cause coverage and quality issues if carriers cannot keep pace.
Many businesses are struggling to manage their own growth. In order to stay competitive in this dynamic and fast paced industry, companies will need to be thoughtful about working capital management. Even companies with strong underlying foundations may be susceptible to liquidity events if their cash flow cycles are not optimized.
Carl Marks Advisors has operating and transactional experience with clients all across the telecommunications industry. We help clients in the industry by bringing a mindset of owners and investors to consistently deliver creative solutions. Our role with companies in this industry can include:
- Strategic planning: Utilizing our years of experience, we work with telecommunications companies to prepare budgets and projections, analyze capital investments, and develop pro forma financial statements.
- Vendor negotiations: We are experienced at improving all areas of the cash conversion cycle including collections, vendor payment terms and negotiations, and identifying short term expense cuts.
- Interim management: Carl Marks Advisors are seasoned professionals with deep telecommunications subject matter expertise. We are able to step in during times of transition to fill executive roles and augment company capabilities.
- Direct industry experience: Our professionals leverage their expertise and insights gained from work with a wide variety of telecom companies including global carriers, government organizations, manufacturers, distributors and service providers.