Industry: Mobile/Wireless

Overview

A national US telecom carrier had acquired and then (years later) sold a mobile carrier in an Asian country. After the sale had been completed, the US carrier began questioning the sale price due to conflicts of interest which became evident with their primary advisor.

We were hired to research local market conditions and company valuation at the time of sale to determine whether our client had received a fair price for the sale.

Challenge

Due to the international location of the company sold, our client had insufficient information on valuation to determine whether they had received a fair sale price. Estimating the sale price required a thorough understanding of the market conditions at the time of sale, other transactions which had occurred in that time frame and the growth trajectory of the market as a whole, so we could estimate the fair sale price.

How we helped

We hired a local research firm in the Asian country to collect market data as well as acquisition pricing for all M&A transactions in the industry. We analyzed this data to determine the most likely pricing levels across years of operation. Based on this analysis, we were able to provide our conclusions to the client.

The results

The client was able to successfully use the data to settle the matter out of court, saving time and court costs in the process.