Technical and Commercial Due Diligence

Project outline

The main challenge of this assignment was to conduct a comprehensive technical, commercial, regulatory, and financial due diligence for a new regional terrestrial fiber-optic cable investment. The study needed to validate key project assumptions, identify risks that could threaten the investment, assess cross-border connectivity solutions, and evaluate technical designs, operational plans, and market competitiveness. Ensuring a robust business case while considering regulatory, strategic, and exit options for the client was central to supporting a sound investment decision.

Project outline

  • Assess demand potential, cable route, key USPs, and management team capabilities.
  • Conduct SWOT analysis of the investment and anchor tenants.
  • Perform regulatory and legal assessments.
  • Analyze competitors and existing/planned terrestrial cable initiatives.
  • Review business case assumptions, including pricing, costs, timelines, and sales pipeline, with sensitivity analysis.
  • Evaluate technical network design and develop a risk matrix.
  • Conduct operational review.
  • Assess potential exit strategies for the investment.

Our impact

  • Provided the client with a validated and robust business case for the terrestrial fiber-optic cable investment.
  • Identified key risks and red flags to inform strategic decision-making.
  • Assessed market demand, competition, and regulatory environment to guide investment planning.
  • Evaluated technical, operational, and financial assumptions to ensure feasibility.
  • Informed potential exit strategies and investment structuring for optimal returns.

Duration of engagement: August 2022 – January 2023