Eden Acquisitions provides a number of resources in support of our overall due diligence process. While we conduct a specific due diligence process with regard to each acquisition, we also draw upon our database, market research and mapping capabilities to furnish our clients with valuable industry and market information.
While conducting due diligence on a specific acquisition opportunity, we utilize proven templates to assemble detailed information. Are essentially organized as follows:
Customer Data – It is essential that we obtain detailed customer data, to include a breakdown of customers by service tier and rate. This is particularly true with the range of technologies, services, tiers and rates utilized my many telecommunications companies today. Available internal billing system reports should contain this information, to include amounts billed and corresponding revenues.
Marketing – What are the current marketing initiatives, how effective are they and how might they be augmented? Marketing initiatives should analyzed by services marketed and corresponding targeted market segments. Who are your competitors and what is their market share? Copies of branding and marketing materials are essential.
Plant and Equipment – Service area and existing facilities maps, including fiber trunk and distribution are of real importance. Towers, switches and location of plan should all be identified. Equipment, in the field, including electronics, switches and CPEs should be identified along with their age. Ultimately, we will need a detailed itemization of all plant and equipment, including inventory.
Agreements – An itemization of all existing agreements with remaining terms, including customer agreements, vendor agreements, leases, FCC and PUC licenses and agreements is very important. Ultimately, actual copies of all of these documents will be required.
Financial Information – Naturally, it is essential to have the proper financial information. Year to date P&L, balance sheet and cash flow statements should include monthly information where applicable. P&L information should include a an itemization of all expenses, including payroll. In addition, we request two complete prior years of this information. Internal financial documents should be initially sufficient.