Transaction support

Transaction support2021-02-08T15:48:23+00:00

We use our understanding of telecoms markets, technologies and regulation to support M&A and debt transactions.

We use our deep understanding of telecoms markets, network 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.

We specialise in undertaking commercial and technical due diligence and developing/reviewing a detailed business plan for the relevant entity. We perform synergy assessments for combining assets and develop business plans for new acquisitions and potential divestments of assets, including fibre infrastructure, towers and spectrum. Where organisations cannot directly share data due to potential anti-competitive behaviour concerns, we are appointed to be a ‘trusted third party’.

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

Find out more about our expertise

Download

Our project experience

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.

Image: Site matched-pair analysis

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.

Following preparation of our valuation reports, we provided support to Goldman Sachs (Sprint’s lead arranger) with a review of the debt instruments by rating agencies (Fitch and Moody’s) and participated in a roadshow for potential acquirers of the debt.

Image: Debt issue prospectus

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.

Image: Red flag analysis

We supported the valuation of a fixed line broadband retailer, whose main business was to resell wholesale broadband access capacity on fibre-to-the-home (FTTH) networks.

The project quantified the expected synergies from a horizontal merger with a similar reseller, as well as the impacts of such a merger on the upstream (backhaul, voice, and IP transit) wholesale capacity business of the potential acquirer.

Image: Staff per 1 000 subscribers

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, taking account of all operator sites and their existing power allocations.

Our models allowed us to illustrate the long-term potential of the site portfolio under different regulatory regimes, despite the highly restrictive electromagnetic field (EMF) limits. A successful transaction followed, in which the site portfolio was sold to a major international TowerCo.

Image: Tenancy forecast for different EMF scenarios

Relevant articles and reports

Our experts

Amit Nagpal
Amit NagpalPartner
Graham Johnson
Graham JohnsonPartner
Andrew Wright
Andrew WrightManaging Partner
Go to Top