Latin American Due Diligence
This project was a due diligence and feasibility analysis of a proposed $70m loan facility from a major lender to a Latin American subsidiary of a top ten European cellular operator. The study included an analysis of operator strategy in the region, recent merger and acquisition activity, and trend analysis and benchmarking of subscriber segmentation, ARPU and data contributions to revenue. Market depth and market share analysis was included to assess the pace of network expansion and determine feasibility of project cash flows. Competitiv e analysis included digital coverage, data and VAS services offered, pricing, technology platforms, customer service, and distribution channels. Risk assessments included evaluation of revenue risk associated with fixed–to–mobile termination, proposed changes in billing practices, and implementation of carrier access codes. Recommendations were made concerning key business plan assumptions including labour productivity and subscriber churn, minimum capital expenditure required, and the extent and composition of distribution channels. The loan facility was approved by the lender, incorporating recommendations made for key business plan assumptions.

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