How we helped a Sovereign Wealth Fund client in understanding business strategies for a recently spun-off Telecom company

October 20, 2022

The Context

The client, a Sovereign Wealth Fund, wanted the TresVista team to assist in gathering cases of other companies which went through a spin-off journey, inspect, and analyze critical learnings from their journey to help them understand possible business strategies that they could adopt.

The Objective

To analyze and understand key takeaways from major spin-offs in the Telecom industry.

The Approach

The TresVista team followed the following process:

  • Research and Case-Study: Conducted research on the telecom infrastructure industry, and its key financial metrics and covered three case studies providing various business details.
  • In-Depth Analysis: Performed an in-depth analysis of the spin-off including reasons, advantages, and key risks of the demerger and drawing conclusions from the learnings
  • Comparison Analysis: Carried out a pre-and post-demerger comparison analysis of the business, organization structure, and key financials, including share price data

The Challenges We Overcame

The major hurdles faced by the TresVista team were looking for qualitative information that could indicate a spin-off way before the spin-off was announced; condensing and refining the relevant information that would be important for the client to understand, as the information available was extensive; and arriving at crucial takeaways that were relevant to the client’s portfolio company as the reasons for a demerger were different across the competitors.

The TresVista team overcame these hurdles by covering broad features in a case study such as business models, timelines, reasons, organizational structure, etc, and by covering a detailed picture of the entire activities rather than a higher number of case studies.

Final Product (Sanitized)