Case Study
Assessing attractiveness of the combined entity formed by a potential acquisition
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
- 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
