For a fibre infrastructure vendor, we performed the commercial due diligence of a company providing SaaS solutions for network design, planning and optimisation

The problem

• Our client, an international fibre infrastructure vendor that sells equipment for fixed network deployments, had the opportunity to invest in a software company focused on providing SaaS solutions for network design, planning and optimisation
• Our client engaged us to perform a commercial due diligence of this SaaS provider (the target) to assess the company’s capabilities and its potential for growth in various markets, as well as to quantify potential synergies

The solution

• Our analysis of the target started by understanding its offering and value-added proposition
  • we conducted interviews with the target’s management and technical staff 
  • we also interviewed some of the target’s clients to understand the reasons for contracting the target, and its weak points
  • additionally, we interviewed operators using other solutions to size the potential interest in the target’s offering
• We performed a competitive analysis of other solutions on the market
• We created a market-sizing model for third-party design of fixed networks in geographies that were of interest to our client and/or the target
• We reviewed the potential revenue synergies proposed by our client arising from cross-selling strategies

Figure: Competition analysis

The result

• Our work resulted in a revised business plan based on the vendor assumptions combined with our various analyses, including significant updates to the market sizing. Our revised business plan was used by our client to offer adequate value for its target, leading to a successful transaction