The Effect of New Infrastructure Investments on Network Value – From M&A to Financing

Post-BEAD are investors coming to buy your ISP, finance it, or compete in your footprint? Will the dollars keep flowing into broadband on the corporate and government side, and where will they go? What about non-deployment funds or future grants?

No one can predict the future, so we’re focused on outlining some of the potential scenarios and what to consider. We’ll help you understand the value of your network in these scenarios, and what you can do to help increase it.

Topics we’ll cover:

• To M&A or not to M&A? 
  • How investors are approaching M&A in Telecom 
    • Balancing expansion ROI vs Acquisition
      • As BEAD fills out the map there are less attractive areas for expansion so more funds flow to acquisitions
      • Will funds be left over on non-deployment that could supplement fees (make some areas better penetration)
    • Less underserved means more money will go into the 2^nd or 3^rd fiber provider areas
      • How will you respond to an entrant? Are there ways to keep them out?
      • How will your economics change if someone does enter?
        • Consider your debt and capital under different profitability scenarios
    • What money has been received
    • What is the total future value of the company
      • Preparing for M&A involves
  • What will lending and interest rates look like?
  • Network appraisals – Validate/Ensure a fair value assessment of new and existing infrastructure for property taxes – what does fair value mean? 

Walk away, understanding potential scenarios of government and corporate investment landscapes and how that will affect the value of your network. Along with approaches to consider when preparing and monitoring the situation.