Merger & Acquisition

Network
Due Diligence

Novegen have extensive national and international experience delivering Due Diligence projects to support Merger & Acquisition objectives. We can mobilise teams at short notice operating in several jurisdictions simultaneously. Project delivery is on a strictly confidential basis.

Pre-acquisition assessment

Our engineers visit network sites to assess network installation quality, validate network as-built documentation and check network configurations are correct to ensure the correct valuation of the network assets.

On-site inspection

The capacity and capabilities of the network are crucial to delivery on the business plan for the merged entity.

On-site inspections are carried out to identify network issues and capacity issues to ensure that the network will be able to sustain and grow the ongoing business.

Testing and service validation

A business plan for the new business will only survive if customers remain engaged, and the quality of customer experience is key to that engagement and reducing churn.

Validating the customer quality of experience is key to understanding the churn rates assumed in the business plan.

Gap analysis

Detailed report generation identifying any gaps between the stated capabilities and capacity of the network and the capabilities and loading of the installed live network.

Business case validation

Working with service providers, we build business cases to support new network build activity and work with our customers to build charging models and processes ensure to frictionless working with service providers.

Reporting

Our Due Diligence reports are created by a dedicated report generation team and encompass everything from the results of the physical surveys and testing, analysing the delta from expected network capabilities and capacity as well as deriving the potential impact of the state of the network on the business case and valuation.

 

Why perform M&A network audits?

Due diligence is an essential requirement of any merger or acquisition activity. It ensures the buyer knows and understands the assets it is buying, any potential liabilities and ongoing obligations it may be assuming.

In the cases of a telecommunications service provider merger or acquisition the network may be the companys biggest asset, yet the extent and capability of the network is assumed to be correct based on the description provided by the seller.

Basing the assessment of the biggest asset on the opinions of the seller can be problematic, especially if the buyer subsequently finds out the capacity and services they thought they could offer turn out not to be available.

Network audits as part of the due diligence ensure the buyer understands the state of the network, how much capacity is left within the network and the ability to support the services that make up the ongoing business plan.

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