Financing has become increasingly important in the satellite sector in the last fifteen years.  Euroconsult has developed a rigorous due diligence capability to serve the needs of lenders, investors, and merger & acquisition targets alike.  This capability ranges from independent assessment of business plans to full company valuations.  Our customers include satellite operators, commercial banks, investment banks and private equity funds.   

Our due diligence work typically covers eight areas:

• Business models/plans assessment - SWOT analysis  -  Determination of the consistency and credibility of cost and revenue (line) items.
  
• Commercial prospects of the underlying market - Breakdown of revenue by market (client type, service, and region) - Revenue per transponder - Cost per transponder - Gross margin - Market drivers by service and/or by region.
• Competitive analysis - Nature of competitors - Market share by competitor, by application, by frequency band or by region - Competitive advantages and disadvantages.
• Marketing strategy - Strategy review including market access  for different applications (regulatory and commercial obstacles) - Channel analysis -Connectivity with ground network facilities
• Customer review & analysis - Analysis of customer base - Backlog by client type - Major clients (top 10, 25, 50 etc) - Major contracts, contract duration, terms & conditions versus competitors - Distribution channels (direct/indirect) - Capacity pricing
• Capex analysis - Capex value and efficiency versus competitors - Future capex requirements to achieve revenues objectives - Priority lists -  -5 years/+ 5 years analysis
• Independent revenue forecasts - (For operators) Revenues - Capacity leased by application, region and/or frequency band - Average revenue per transponder     (For service providers) - Revenue (business metrics, terminal traffic etc.) - Average revenue per unit
• Company valuation - Independent valuation based on various methods: e.g. benchmark methods (comparable, recent transactions), industrial valuation, DCF.  Euroconsult works independantly or in partnership with third parties including investment banks. 
• Technical assessment of the space segment - Euroconsult manages overall due diligence processes working in partnership with specialized technical due diligence companies.   Our high level understanding of systems’ technical performance is instrumental in our ability to asses the impact on commercial performance and manage the overall due diligence process.