Product Type: Market Research Report
Published by: Ovum Plc
Published: November 2007
Product Code: R464-687Description The rapacious appetite of private equity firms has been well documented, and can be seen across the world and in a wide variety of industrial sectors. In 2006 there were 189 private equity funds with an estimated $250 billion worth of funds to invest. In the telecoms sector the incumbents Bell Canada, Eircom in Ireland and TDC in Denmark are now private equity-owned. This report takes a closer look at why the private equity sector is attracted to the telecoms sector.
Table of Contents - Key messages
- 2007: the year private equity came to the fore
- Private equity: a definition
- How private equity operates
- Key criteria that attract private equity investment
- Cash generation
- Opportunities for further value creation
- High barriers to entry/limited competition
- Under-performing management
- Why now for the telecoms sector?
- Being in the right place at the right time.
- Private equity’s goals for investments
- Measuring return on investment
- Capital extraction strategies
- The importance of exit strategies
- Private equity: heroes or villains?
- The impact of the ‘credit crunch’
- Choppy waters, but private equity is not dead yet
- The private equity opportunity in communications
- Private equity and the case for breaking up telcos
- Defensive strategies for telcos
- Table of figures
- Figure 1 The role of private equity and investment banks in an acquisition
- Figure 2 Capital extraction by debt pay down
- Figure 3 Private equity targeting matrix
- Figure 4 Private equity strategy for an acquired target telco
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