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 acquiring a telecommunication operator is a large undertaking and requires thorough assessment to arrive at a valuation.
Challenge:
One of BT Telconsult’s existing clients wished to acquire a fixed and mobile incumbent company. They required a due diligence assessment of the networks, systems, IT, HR and processes. The target company had been privatised some 3 years previously and was being “sold on” by the current owners.
Solution:
BT Telconsult assembled an experienced due diligence team, many of whom had worked in BT’s own joint ventures and acquisition projects. A comprehensive set of due diligence reports was produced, which identified the major factors that would impact the value of the bid. This included projected Capex and Opex for use in the Business Plan, as well as high risk areas in the company strategy.
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 realistic bid. The bidder was also able to benefit from BT’s brand and reputation in the submission document. The BT team worked closely with the other experts involved in the due diligence, providing vital input to areas such as insurance, contracts, legal and business modelling.
