Purchase Price Allocation (PPA) for a large telecommunication Group
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Purchase Price Allocation (PPA) for a large telecommunication Group
The business situation
- The client acquired a major telecom operator in Europe to strengthen its presence in a key market as part of its international expansion strategy
- The transaction involved region-specific complexities, including valuation of spectrum rights, telecom tower infrastructure, and a large customer base, particularly as the acquirer already operated in the market with similar asset classes
- The client engaged our team to perform purchase price allocation in accordance with IFRS 3 – Business Combinations, requiring valuation of multiple tangible and intangible assets and allocation of total consideration across legal entities
Our team’s role
Consideration allocation and entity-level analysis
Allocated total transaction consideration between the two target legal entities, supporting accounting conclusions and transaction reporting requirements
Identification and valuation of intangible assets
Assisted management in identifying key intangible assets, including customer relationships, brand, spectrum rights, non-compete agreements, and favorable and unfavorable contracts. Developed valuation models reflecting asset-specific risk, attrition dynamics, and economic benefit attribution
Valuation of tangible infrastructure assets
Performed valuation of telecom tower assets and related equipment, including remaining useful life assessments and technology obsolescence considerations
Integrated asset-level valuation framework
Conducted cross-asset analysis covering customer base characteristics, contract structures, spectrum acquisition dynamics, and technology evolution to support defensible fair value conclusions
The value our team added
- Defensible valuation of complex telecom assets: Valued tower infrastructure based on capacity, height, equipment configuration, and expected technological transition, including implications of emerging 5G deployment
- Robust customer relationship valuation: Analyzed customer mix and attrition patterns across prepaid, postpaid, enterprise, and pay-as-you-go segments to support valuation assumptions
- Structured assessment of spectrum rights: Evaluated key valuation drivers such as reserve pricing benchmarks, ease of acquisition, spectrum overlap, and technology considerations
- Market-aligned goodwill benchmarking: Benchmarked implied goodwill levels against comparable telecom transactions to support financial reporting positions
- Efficient audit execution: Provided audit-ready valuation documentation and supported a smooth statutory audit process through reporting closure
Case study references work performed by the Uniqus leadership/team members at their existing/respective previous organizations
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