About the Client

A leading telecom service provider based in Europe

Business Need

  • The client wanted to augment its service portfolio by acquiring broadband services. It approached RocSearch to analyse the potential implications of a proposed merger with a target company
  • They also sought to develop an understanding of the shortlisted target company’s business profile, its financial and operational performance, future plans, and assess its attractiveness as a standalone entity

Approach and Methodology

  • RocSearch looked through company filings, presentations and analyst reports to develop an understanding of:
    • Historical and forecasted financial performance of the target company
    • Company’s operational KPIs (Key Performance Indicators)
    • Strategies adopted by the company and future growth plans, especially related to expanding its subscriber base
  • The team also developed a robust framework to understand the attractiveness of the target company and implications of the proposed merger by conducting:
    • Value assessment analysis of the company
    • Risks analysis of the merger

Business Outcomes

  • The study helped the client to assess the value of the company based on M&A broadband deal multiples in Europe and understand the pitfalls of the proposed merger

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