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PricewaterhouseCoopers' Technology Executive Connections is a series of surveys of senior leaders running technology companies worldwide to explore, understand and share ideas on today's pressing business and strategic issues. The surveys are conducted in cooperation with the Economist Intelligence Unit.
This is the second edition of Technology Executive Connections. The first report explored how to successfully embrace change.
As one ubiquitous change we are all observing in the industry is the rapid pace of convergence between telecom carriers, technology, and content developers, this second report delves into how M&A is shaping our digitally converged world.
Key survey findings:
- Survey findings show that there can be no doubt – the driving force behind today’s rapid pace of acquisitions and mergers in these sectors is digital convergence.
- Partnerships and alliances can also help companies gain a foothold in other industries and markets. But executives see M&A as a means of capturing entire beachheads.
- Survey participants suggest that companies are likely to spend considerable sums to buy firms over the next five years to help them realize their convergence goals.
- For those organisations choosing the M&A path, the warnings from the research are clear: Be certain you’re pursuing a realistic strategy—and then compare the value of that strategy versus the acquisition price, and the deals that work not only start with realistic, solid strategy – they also have a plan to quickly integrate business models and cultures.
- The good news is that technology, media and telecom companies appear to be approaching the current wave of M&A with their eyes wide open. Discussions with executives and the survey findings reveal a focus on fundamental strategic soundness.
- Executives are neither discounting the challenges of integrating operations nor overvaluing the revenue synergies of the combining companies. Instead they stress operational synergies and cost savings, and are even taking careful steps to ensure the cultures of the combining entities are compatible and sustainable.
Download: Technology Executive Connections Vol. 2 (PDF 2.6 MB) | |
