2. + We help Telecom and Technology
businesses maximise value for their
shareholders
About
Founded by Adam Zoldan and Paul
Billingham in January 2009 based on
proven experience in delivering value in
the telecoms and technology sector
#1. Knight CF has completed 36 transactions
Since inception, Knight CF has in the sector in the last 3 years, more
completed more deals in the ICT than any other advisor
sector than any other adviser
Our team of 7 is based from our London
and Warrington offices
Our services include disposals and exit
planning, M&A, fundraising, on-going
development and strategic support
Soon to launch the Venturepreneur
Investment Fund specifically for the
sector
3. + Buy & build players Daisy, Six Degrees,
GCI, Timico and Adapt have all made
significant acquisitions in 2012
Market Conditions
Private equity interest in the sector remains
strong (BGF recently invested £10m in
GCI)
C&W now under offer from Vodafone which
could have a impact in aspects of the
market
We expect a number of transactions in the
sector to be announced before the summer
Publicly quoted telcos have seen a 20%
increase in values in the first 3 months of
2012 versus 10% for the FTSE
Maintel and Colt announced very positive
results, but Alt Net and Daisy have given a
more cautious outlook
4. + “Quality” of earnings
Buyers‟ Focus Buyers are conscious of declining
revenues in legacy products and large
one-off revenues
Very focused on recurring revenues
Customer „ownership‟ drives value
Strategic rationale is harder to justify in
the current market
All of the above will underpin future
performance which is ultimately what
buyers are basing their decision on
5. +
Optimise your value
Customers drive value, ownership is the
key to maximising the value of each
customer
Do you Trade on
Tailored Critical
know recurring
service partner
them? basis
Customer Ownership:
“a subjective measure illustrating the
level of reliance a business has on a
supplier”
6. +
Optimise your value
All buyers look for strong recurring
revenues
Maintenance, IT services, calls, lines,
broadband, mobiles, hosting
Cross-selling more services locks the
customer in
The more often you invoice, the better
Investment decisions are based on
forecasted revenues. Recurring revenue
streams are predictable and provide
investors with confidence of a return on
their investment
7. +
Hosted vs CPE
CUSTOMERS are the only source of
growth and value
Customers drive value; customer
OWNERSHIP increases value
All buyers look for resilient RECURRING
revenue
Customers want SOLUTIONS not
technology
The switch to IP and HOSTED is
irresistible, increasing the VALUE of your
customers and business
8. +
Impact on Value
A hosted solution, adds value:
It provides recurring and predictable
revenues
It is a solution that enhances customer
ownership
It substitutes short term gain to long term
value
It is here to stay
9. +
Any Questions
Web - www.knightcf.com
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