Deloitte campus maverick 2016 US Telco

1. Campus Maverick _US Telco
Ltd
Alok Pandey alokp@iitk.ac.in
Neha Singh nehasgh@iitk.ac.in
Kriti Doneria doneria@iitk.ac.in

2. EXECUTIVE SUMMARY

3. POSSIBLE AVENUES FOR TelCo
On-premise
solutions
Optical
networking
solutions
4G LTE carrier
integration
Things as a
service (TaaS)
Cloud computing

4. M&A TARGET IDENTIFICATION
• Choosing best combination to diversify technological avenues and minimize risks.
• Leveraging existing customer base and competencies.
• Exploiting synergies-locational, technological & operational.
• Future-centric strategies.
• Infra. & services=symbiotic
colocation benefits.
• Leveraging strong foothold in
the domestic service market.
• High legal protection &
positive GDP growth rate.
• Offers a wide variety of
services like IoT, high speed
internet ,business focused
services.
• Existing competencies support
future advancements like
LTE.,Wi-max.
Nzone Communications Inc.
• Highest revenue growth rate of
116.67% in the segment.
• Broad technological footprint.
• Lowest competition in market-
Argentina.
• Presence in wireless as well as
wireline markets.
• Operate in tower-renting,
which is similar to US Telco.
ASA Towers Inc.

5. BUSINESS VALUATION & ACQUISITION
PRICE
EBITDA
MULTIPLE
10.2x
TO
12X
CURRENT EBITDA
$104 MILLION
BUYING PRICE
$1.0608 Billion to
$1.248 Billion
NPV*
MULTIPLE
3.8x
TO
5.7X
NPV
$8.33
MILLION
BUYING PRICE
$31.68 Million to
$47.52 Million
NZONE COMMUNICATIONS INC.
ASA TOWERS INC.
**NPV IS CALCULATED USING REVENUE VALUES FOR 2015-2020.

6. CONSIDERATIONS AND INTEGRATION
RISKS

7. TERM
• Acquisition and re-branding
announcements.
• Assess and analyze workforce
and restructure the organization.
• Define business verticals &
delegate workforce accordingly.
• Start bundling infrastructure and
IT solutions together.
• Conduct a marketing survey in
Argentina & draft a roadmap for
fast tracking growth.

8. RECOMMENDATIONS-LONG TERM
• Standardize processes,
operations & service level.
• Cross-train workforce. Identify
future leadership.
• Launch integrated end to end
solutions in the market.
• Seek out new customers in B2B
& B2C.
• Start deploying advanced
technologies in the US market.