Industry Analysis

Sector:

Telecom & Media

Geography:

Europe

Objectives & Scope:

Developing business case for combining mobile telecom and media businesses ("quad-play")

Results delivered:

Clear and concise independent assessment of the value, risks and real-options associated with a potential M&A opportunity under likely future market and industry scenarios

Process steps/ methodology:

• Examined relevant business units to assess the impact of potential consolidation
  • Commercial (market share, customer profile, overlap, etc.)
  • Financials (revenue, margins, leverage, etc.)
  • Asset and capital structures (customer support, billing, etc.)
  • Competition and industry concentration (pricing, etc.)
• Reviewed strategic trends in key "external" factors
  • Customers (needs and spends)
  • Suppliers (capacity, concentration, cost and pricing)
  • Regulatory (policies and incentives)
  • Technology (adoption levels)
  • Competition (capacity, pricing, management imperatives)
• Developed future industry scenarios
  • Facilitated workshops to assess industry "end-state" for alternative evolution path of key "external" factors (based on "likelihood"-"impact" framework)
• Assessed likely position of specific business units ("stand-alone" vs. "consolidated") in each industry scenario
  • Competitive advantages (including differentiation, customer access, insights, lock-in and pricing strength)
  • Share of market volume, revenue and profit pools
  • Capital deployment / position relative to suppliers
  • Talent attraction and retention
  • Access to key technologies
• Developed recommendation and actionable plan
  • Value and risk profile under key industry scenarios
  • Risk mitigation factors (including deal structure issues and levers to "shape" industry scenarios)
  • "Watch-list" to monitor value-enhancement and protect potential downside
  • Recommendation