An international Private Equity firm planned to acquire a Network Operator.
Our client’s situation
An international Private Equity firm planned to acquire a Network Operator. The Partner had already appointed a well-known, generalist strategy firm to conduct commercial due diligence, but recognized that a specialist in the sector would bring additional, deeper insight.
How we approached the issue
The value of the Network Operator was largely in its infrastructure, hence the client wanted Cartesian to assess the quality of the network. We set out to answer a set of key questions: Was the network fit for purpose? Did it provide a basis for competitive differentiation? What investment was required to maintain it? And were there any other red flags?
What we did to help
The client’s questions lay at the intersection of traditional commercial and technical due diligence. To address them, Cartesian brought together consultants from its Strategy and Management Consulting teams with expertise in telecoms networks, network operations, OSS/BSS and competitive analysis.
Using materials from the data room, our team analyzed network maps down to street level to build a detailed view of coverage. We compared the footprint with competitors to identify points of competitive advantage.
Our team then interviewed management and conducted site visits to get a full picture of the operations. From this we were able to evaluate future investment needs.
The end result
Cartesian synthesized its findings in a due diligence report that presented the technical issues along with the commercial implications. Our report gave the client a richer understanding of the operator’s business, its competitive positioning and future capital needs, and ultimately the confidence to execute this deal. This additional detail complemented the commercial due diligence and enabled the equity and debt partners to make better informed investment decisions.