Due diligence for a cable television provider

One of Ukraine’s best telecommunication companies engaged us to conduct a pre-investment due diligence (buy-side) for a cable television and broadband Internet provider.

Objective: evaluate organization of business; impartial financial position and performance assessment.

Deliverables:

✔ Identified risks that pertained to:

• inadequate structuring of the group’s intended for sale (some key resources used in business remained beyond investor’s control);
• defects in organizational structure and management;
• poor quality of accounting (142 adjustments to eliminate errors, which in total accounted for the group’s annual net income).

❗ Risks identified compelled the potential investor to reconsider the purchase. ❗

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