Due Diligence

Commercial Due Diligence

Having access to an impartial and expert assessment of the commercial state and likely prospects of a business is vital for any prospective buyer or strategic investor. This is especially true in the case of partial or full privatisations of formerly state-owned telecommunications operators, where conventional marketplace metrics may be difficult or impossible to obtain.

With its blend of commercial, regulatory and technical expertise, InterConnect Communications is well-placed to provide just such assistance. Our specialists have practical experience of working within such companies and have undertaken full reviews of the markets in which target companies will operate, including:

Market Analysis

Market trends for key services i.e. fixed, mobile, broadband;
PC penetration and the future for residential broadband;
Penetration of value-added services;
Revenue analysis in terms of customer spend measured against regional averages and GDP:
- Business customers;
- Residential customers;
- Penetration assumptions;
- Pricing assumptions;
- Spend forecasts;
- Future product and service requirements;
Market impact of regulatory instruments i.e. carrier pre-selection and number portability;
Operational metrics e.g. lines per employee and other appropriate measures.

Competition Analysis

What competition can the operator expect to face over given time periods?
Summary of major players and network and service offerings i.e. cable, satellite, fixed, mobile or wireless;
Condition of infrastructure, market penetration, and future build plans.

Privatisation Analysis

What is the likely worth of the company to be privatised? We can provide:

Top-down valuations;
Bottom-up valuations;

Timing of the privatisation can be critical to its success or otherwise. Key issues to be considered include:

Government priorities;
State of world and/or regional markets;
Regulatory context;
Preparation requirements of the entity to be privatised.

More Information?

For more information about InterConnect's Due Diligence services, please contact Eric Tyson by phone on +44 (0) 1291 638400.