The Client is one of the largest telecommunication services providers in Malaysia. As a licensed Internet Service Provider (ISP), its principal business activities are providing Bandwidth Services, Tower Services and Internet Services.
The Client currently operates more than 1,800 telecommunication towers throughout Malaysia and has an extensive fibre optic network of over 12,000km, covering the whole of Sarawak and a submarine cable from Sarawak to Johor, which links to Singapore, plus inter-border terrestrial connections with Sabah, Brunei, and Kalimantan.
The Client has developed an expansion plan to cater to the network expansion needs of cellular operators and other organisations
FULL STORY
Given the accelerating digital adoption & demand for internet services, the Client is aspired to expand its business by venturing into the Dark Fiber business segment. The Client had identified an acquiring target with relevant licenses and infrastructure aligned with their expansion plan.
The Client will need to conduct due diligence on the acquiring target and validate the viability of its business plan before the signing of the binding term sheet on the acquisition of the company.
We were engaged in providing a market intelligence study and business due diligence frameworks. The scope of work includes the services as follows but not limited to the macro-economic analysis on regional trends for the telco & dark fibre industry, high-level industry value chain analysis on the telco industry in Malaysia, demand & supply analysis on telco services in Malaysia and a skill competency assessment on the management of the acquiring target.
KEY OUTCOMES
We began the study by conducting a visioning workshop with the Client to understand the project vision and expectations of the Client. This had allowed us to ascertain a clear objective of the client that will guide us through the exercise.
The team has conducted macro-economic analysis on major global and regional events that will drive the project’s interest. Our assessment looked at the key industry trends that will drive global telecommunications demands as well as critical industry challenges that are inhibiting the industries growth.
We then conducted a high-level industry value chain analysis on the Telecommunication ecosystem in Malaysia, focusing on the fibre optic cables along the highways. The initial assessment provided several directions for the study team to deep dive into subsequent studies on the demand and supply gaps.
To establish a baseline understanding of the current plan in place, the team has reviewed the relevant Policies & Regulations from the government & regulators on fibre optic licensing, the technical standards and infrastructure requirements for fibre, etc.
The team also worked with the subject matter experts and identified a high-level skill competency assessment of the acquiring target, including the owner, directors and key team members, to assess their talent and skills capabilities.
After analysing all the data available, we then carried out a comprehensive due diligence study on the business plan of the acquiring target to validate the achievability of its revenue target and competency to implement the business plan.
Our evaluation report had substantiated the company valuation and supported the negotiation of a binding term sheet between the Client and the acquiring target.
Important Notice:
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