Due Dilligence
Do you have confidence that your investment decision is wise?

Investment Advice

BMIT has extensive experience providing investment advice, with specific competency in the areas of fixed and mobile networks, terrestrial and submarine fibre optic networks, wireless access networks, and a wide range of telecoms and IT services.

BMIT combines research from its own databases on African telecoms markets with data from the project sponsors and other secondary sources, in support of playing its role of independent advisor outlined below. In some cases, new primary research may be commissioned as required for the specific investigation.

The outcome of each due diligence study is a considered judgement on the soundness of the investment, based on risk analysis and an independent assessment of risk mitigation activities that have been taken by the project's sponsors.

Following on from the investigation, there is an option of BMIT assisting the client in facilitating communication between the interested parties, while always remaining in the role of dispassionate, third party advisor. BMIT will also explore other ways of assisting clients in taking the first steps towards implementing the project.

Approach

Each due diligence engagement typically entails an appraisal of supplied documentation and data, a business and financial model review, and a review of any documentation provided by the project sponsor, to facilitate the provision of expert opinion regarding the viability, risk profile, and recommendations for modifications and / or improvements to existing plans and requirements. As due diligence advisor, BMIT's brief would be to use its extensive knowledge of the African telecommunications market, to scrutinise the project sponsor's business case with a view to:

  • Confirming market size and growth rate, by creating scenarios for upside and worst case situations;
  • Confirming whether the sponsor's marketing strategy is correct and viable in order to secure the required customers;
  • Scrutinising the practicality of the underlying assumptions used in the business case, including market growth rate and market pricing trends and their impact on the projected revenues;
  • Considering the impact of other  competitors or potential new entrants, and the sponsor’s ability to capture market share based on its competitive position.

Revenue Assurance

  • Detailed reviews of addressable markets and key opportunity segments
  • Reality testing of revenue/market share projections
  • Analysed by key market and product segments over the forecast period and the building of flexible revenue/market share scenario models
  • Incorporates all facets of possible new technology/product substitution
  • BMIT’s deep insight into industry competitive dynamics provides insight into credible scenarios going forward

Competitor Analysis

The provision of credible market share analysis by key competitor, reality tested by extensive industry competitive dynamics experience allows us to paint insightful models of possible competitor responses.

Regulatory, Policy and Spectrum Advisory

Our extensive and lengthy experience in telecoms policy and spectrum advisory provides us with critical insight into real-world policy, regulation and the needs/requirements/behaviour of ICASA, DTPS, National Treasury and other related government departments.

Financial Modelling

We are able to provide full financial modelling services including detailed income statement, balance sheet, cash flow and enterprise valuation analysis.

Technical and Engineering Analysis

We are capable of conducting technical and engineering reviews for both wired and wireless technologies. With the help of associates these reviews can include network management, billing systems and general O & M reviews.

Operations/Business Process Reviews

We provide key insights and feedback on the key executive teams of target investment companies. We are able, with the assistance of associates, to provide for detailed marketing, financial and commercial business processes reviews of target clients.

Human Capacity Assessment

We are able to provide with the assistance of associates full human capacity reviews should these be required during a full due diligence.

Technology Substitution Analysis

Our deep insight into technologies, sharpened by our experience of practical market dynamics, allows us to forecast technology, product/service migration or substitution all backed up by credible research.

GIS/Geo-Spatial Analysis and Advisory

Our unique and extensive in-house GIS/spatial competence allows us to gain insight into geo-spatial demand and the engineering implications thereof. Market geographic addressability can be best assessed through this type of analysis.

Recent Experience 

  • Two Wireless ISP due diligences (2016/2017)
  • Multiple Provincial/Metro broadband network projects (Market, technical and financial)
  • Wireless operator - full strategy review and capital investment case
  • FTTH operator due diligence (2016)
  • Large Fibre Operator business case development (2015)
  • 2 x National long distance transmission – due diligence, business case assessment

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