Transaction support
We use our understanding of TMT markets, technologies and regulation to support M&A and debt transactions.
The TMT sector continues to evolve at a rapid pace, leading to frequent changes in market environments and requiring constant technological innovation. This unique environment presents both business opportunities and strategic challenges to our clients.
We use our deep understanding of the sector, technologies and regulation to support M&A and debt transactions, often working alongside our client’s other professional service advisors, including investment banks and lawyers.
Our senior team members have led over 50 M&A and debt transaction-support assignments across the world for transactions ranging in value from USD0.5 to 10 billion.
Our transaction support services
Asset and firm valuation
We develop long-term business plans for relevant assets/companies in support of discounted cash flow valuations, utilising our in-depth market, technical and regulatory knowledge.
Commercial and technical due diligence
We review entities’ revenue, operating and capital expenditure projections, as well as their operational performance, to identify any ‘red flags’ which are then investigated in detail.
Vendor due diligence
We work for sellers of assets (e.g. tower portfolios, telecoms operators, spectrum portfolios) to independently assess the business plans for the standalone entities/assets.
Synergy assessment
We assess network and non-network synergies for combined assets; for example, proposed in-country mergers of mobile operators or combinations of tower portfolios.
Our project experience
Network and non-network synergy assessment of mobile operators merger
We supported two multinational telecoms operators to assess the potential combination of their mobile operations in a South East Asian country.
Our role was as a ‘trusted third party’. We undertook a detailed geographic assessment to quantify the network synergies arising from site consolidation and avoidance of future network site build. We also assessed operational costs to identify the savings that could arise from combining marketing & sales, customer service and other departments.
The synergy assessments were used by each of our clients’ investment banks for valuation purposes
Valuation of spectrum in support of innovative debt transaction
We valued Sprint’s spectrum in the 2500MHz and 1900MHz bands, which the company used as collateral to raise USD3.5 billion of debt funding in a ‘first of its kind’ debt transaction. In a subsequent transaction, Sprint raised a further USD4 billion of funding, secured by the same assets.
Due diligence of mobile operators in New Zealand & Bolivia
We undertook a detailed commercial and technical due diligence of 2degrees (New Zealand) and Viva (Bolivia) in preparation for their acquisition by Alignvest Acquisition Corporation.
In addition to an initial ‘red flag’ assessment of the market and regulatory environment, our work included a detailed assessment of the future network investment plans to ensure they were sufficient to support the network traffic that would need to be carried to support the forecasted revenue growth.
We discussed each company’s own projections with management and prepared a more conservative investment case which was used for valuation purposes.
Due diligence of FTTH altnet
We undertook a due diligence of Altifiber’s operations ahead of investment by KC Impact (now Serena Industrial Partners).
We produced a ‘red flag’ report reviewing Altifiber’s business plan and technical solution within a tightly compressed timeline, combining local market knowledge with international benchmark data. We analysed Altifiber on topics including market / penetration, revenue projection, regulatory environment, network cost forecasts, key supplier agreements and operational plan.
Vendor due diligence for sites operating within strict EMF restrictions
We prepared a vendor due diligence report and business case for the sale of a mobile operator’s entire tower portfolio in a market with extremely strict limitations on non-ionising radiation.
In addition to detailed geographic forecasting of site demand and loading capacity, we developed a detailed engineering-based model of the available power budget within the non-ionising radiation limits.
Our models allowed us to illustrate the potential of the site portfolio under different regulatory regimes. A successful transaction followed, in which the site portfolio was sold to a major international TowerCo.
Relevant articles & reports
Wind Tre’s RANco sale – a template for infrastructure investment?
23 February 2024
EQT’s attempt to acquire Wind Tre’s Radio Access Network may not have come to fruition, but it would have established one of the first independent RANco in Europe. […]
A new direction in European telco merger policy?
16 February 2024
For years, the European Commission has resisted consolidation but are we about to see a new direction in favour of scale?
The Commission’s highly anticipated white paper on […]
The race is on – alt-nets compete in the roll-out of Fibre-to-the-Premises
30 August 2022
Roadworks are increasingly commonplace across our city streets as the race to roll-out Fibre-to-the-Premises (FTTP) gains ground. Aetha’s Amit Nagpal considers the form – and the potential prize.
Our […]
