Reviewed the growth strategy, operational set-up and business plan of a company that aimed to become a leading data-centre platform in Africa

Project experience | Consulting


1138910853_735x70.jpg

The problem

  • A long-distance connectivity player acquired an existing data-centre company to use it as a platform to expand its co-location and hosting business across Africa
  • The company and its potential investors jointly hired Analysys Mason as an independent adviser to review the growth strategy, the operational set-up and later the business plan prepared by management, with a view to increasing the robustness of the plan and raising fresh capital/financing

The solution

  • We assessed the growth strategy by looking at different aspects of the business:
    • demand and competitive dynamics in the markets that were selected by management for the initial expansion
    • review of the positioning within the technology stack and in the value chain (incl. channel strategy) and whether this could support the growth expected in the business plan
  • The business plan review was supported by a market sizing exercise for each market where the company planned to establish a data centre, to calculate an implied market share (of both data-centre space and revenue)
  • The Analysys Mason technical team also reviewed the design of the data-centre facilities to validate the initial build-up capex and the investment required for future expansion to validate the capex projections in the business plan

Figure: Percentage of data-centre space outsourced (% of total market)

Case study 127.JPG

The result

  • Our report was presented to the Board and was used to inform decisions related to the company’s data-centre strategy
  • The client used our findings to fine-tune its business plan, while the investors used the due diligence material to develop their own valuation model and support the discussions with their investment committees

We were hired by our client and its potential investors to review the growth strategy, the operational set-up and later the business plan prepared by management, with a view to increasing the robustness of the plan and raising fresh capital/financing