1: Given the current business/industry situation, what are the some of the growth avenues that US Telco

should look at and why?

Current
Property operations
Leasing of space on communications sites: Wireless service providers, radio and television
broadcast companies, wireless data providers ,government agencies and municipalities and
tenants in other industries
Service segment
Tower related services
Organic Opportunities :
Since 65% of the domestic revenues come from 5 clients and 45% of the international
revenue come from 4 global clients, emphasis must be placed on the existing accounts
through up-selling or cross selling to the other clients
Increase site-level profitability: Since tower growth strategy has reached a mature
phase, emphasis should be laid on providing services to improving the operations and
site profitability
Asset Utilization: New business opportunities like ATMs or internet kiosks
New Technologies:
In-building systems
Distributed antenna systems
Managed rooftops
Services that increase speed of the network deployement

2: From the list of preliminary targets identified by the US Telco, what are the two most attractive
targets and why?
US Telco
Limited

NZone
Communicatio
ns, Inc.

ASA Towers,
Inc.

BBA Africa
Limited

TeleMo
Networks
Limited

NPV

795.2946

548.9137

45.78413

310.5969

730.6564

Terminal Value

1278.167

1049.667

135.6713

778.3249

1628.056

Enterprise
Value

2073.461

1598.581

181.4554

1088.922

2358.712

ROE

8.63%

9.20%

10.47%

10.01%

9.67%

1
6

1
7

1
8

1
9

2
0

1
6

1
7

1
8

1
9

2
0

1
6

1
7

1
8

1
9

2
0

1
6

1
7

1
8

1
9

2
0

1
6

1
7

1
8

1
9

20

11

13

13

30

47

58

42

60

23

29

31

26

17

Revenue
growth (%)

3: For the two targets identified, what buying price would you recommend to the US Telco?

4a: What would be the key integration risks and considerations that US Telco will have to consider to
integrate successfully with your chosen target?
According to KPMG report, following are
the key integration factors that affect a
successful M&A*:
Percentage of factors affecting the success of any M&A
45%
40%
35%
30%
25%
20%
15%

39%
31%

10%

18%
11%

5%
0%
Well Executed Integration Plan

1%
Effective due Diligence

Other

Percentage of factors affecting the success

*Post-Merger People Integration - KPMG | US(2011). Retrieved from

*6 McKinsey&Company, Perspectives on Merger Integration, June 2010

Key integration risks and considerations:

Employee engagement: Research suggests
70% of all M&As fail to produce any benefit for
the shareholders, and over half actually destroy
value*. Majority of the companies report that
their M&A deal failures may be attributed to
people and organization issues

4b: Please provide recommendations that US Telco will have to execute in the short term (30 days) and
long term (180 days)