From deal to delivery: where mobile consolidation value is won

Mobile consolidation is back and the opportunity is significant. Stronger market positions, improved returns and long-term value creation are all within reach.

But success is not defined by the deal alone. It is defined by what happens next.

In this video, Paul Jevons, Principal, sets out how operators and investors can turn consolidation ambition into tangible results. From aligning the deal thesis with a deliverable integration strategy, to balancing quick wins with long-term transformation, execution is where value is unlocked.

The advantage goes to those who start early. Operators that plan transformation pre-deal, align leadership and governance, and take a disciplined approach to integration are the ones that deliver on expectations.

If you are considering consolidation, now is the time to get ahead of the execution challenge.

Learn more about how we support operators, investors and lenders in a consolidating mobile market or speak to one of our experts now.  

Transcript 

What are the implications of mobile consolidation for operators beyond the deal itself?

For years, mobile operators have been under a lot of pressure for opex and capex just because of the commercial environment. And while consolidation represents significant opportunities, in the short term, it means extra work, extra types of work, different capabilities. And so it's just a pressure. It's pressure on capability and capacity.

What factors influence how much value is realised after a consolidation deal?

I think it all comes down to the quality of the planning, the quality of the design and the operating model, and the fact that not all of the benefits written on paper are actually realised. And the benefits that are realised take longer to get banked. So it's a combination of factors. But, you know, at the end of the day, it's down to planning and detailed execution.

Which execution risks most often undermine post-merger value?

Not having a detailed and well-thought-through integration strategy usually is one of the first things that causes a problem. There are complexities around IT systems, but more importantly, it's the governance and leadership that actually is needed to make an integration a success.

When should transformation planning begin in the context of a consolidation deal?

To be effective, transformation planning really needs to start pre-deal. So when you're actually thinking about what the deal means, you need an integration strategy. Then you can realistically quantify the benefits and put a plan in place that will deliver those benefits as expected by investors and shareholders.

How prepared are operators for post-merger change?

I think some are unprepared, not all, but some are definitely unprepared. Sometimes that is a combination of the skills and capabilities within the business. Management teams are very good at running a business. They may never have fundamentally changed the operating model of a business. The other aspect is many of the deals are designed and transacted not by the management team or the people who have actually got to implement it, but by shareholders. So there is a disconnect and that's part of the problem.

What should transformation planning focus on first?

To realise all of the benefits, it's critical that operators are able to deliver any quick wins and short-term benefits without disrupting the operation, while at the same time actually beginning the planning execution of some of the long-term benefits. So they've got to focus on that balance of banking the quick wins, delivering the quick wins, but without any operational disruption and understanding what the long-term impact on the business is going to be.

What role does Analysys Mason play in supporting consolidation deals?

We help operators by making sure that there is a realistic deliverable plan that matches the actual deal thesis and the integration strategy at the start. So that means that the benefits can be realised without the disruption to the business, because we understand how to make this happen and we've worked with operators for decades in helping them deliver organisational, business and IT transformation.

Where does Analysys Mason’s expertise add the most value in consolidation scenarios?

The thing about Analysys Mason is we have extensive understanding of the marketplace, of the deal, the deal structure, the deal objectives. In addition to that, we've got a real depth of knowledge on operators' business models, operators' value chains, and we've been helping them for years deliver operational change, IT system change and, you know, structural change in the business. So we bring those three things together. The deal, understanding the value chain of the business, and how to actually implement change and deliver operating model transformation.

What is your one key message to operators and investors considering a consolidation move? 

Start the transformation planning early and agree up front, before you sign the deal, what the integration strategy is.