Liberalisation of telecommunications markets has encouraged new entrants and in turn stimulated merger and acquisition activity. Economic forces drive investment and political forces increasingly permit foreign investment. But taking a share of a large telecommunication operator is a massive undertaking and requires thorough assessment to arrive at a valuation.
Challenge:
A successful operator developed a strategy of expansion through acquisition of overseas operators. Facing a multi-billion dollar opportunity to buy a majority stake in a tier 1 operator, it required a reliable assessment of assets, skills and potential to be performed with only a few days' access to data and personnel.
Solution:
BT Telconsult assembled an experienced due diligence team, many of whom had worked on BT's own joint venture and acquisition projects. To encompass the full technical operation in the time available, a broad team of subject matter experts was mobilised, supported by a core team who developed the post diligence valuation. This covered existing status ("as is") and potential ("could be").
Benefit:
Relying on BT's expert consultative practitioners the client was able to gain crucial insights into the commercial, organisational, technical and operational risks associated with the investment decision and build sufficient confidence in order to submit a winning bid. The bidder was able to benefit from BT's brand and reputation in the submission document. BT Telconsult was able to help the client to de-risk the investment decision and support the critical post-acquisition period with key personnel assignments.
