MediumM&A
Connecting your world
Case Prompt
- Your client, Sodaina Telecom, is a telecommunications company. The company has high brand recognition only in Indonesia and has grown primarily through a series of acquisitions over the last thirty years. Less than a month ago, the CEO announced another acquisition of a large satellite broadcasting company, Hoshi Broadcasting. The target company, Hoshi, is stable but slow growing.
- In order to make this merger valuable, the CEO has asked your team to identify:
- Synergies from the merger
- Ideas for differentiated product offerings
- Opportunities for new growth
General response summary
The candidate should ask immediately what products are currently offered by both companies.
Information to Provide:
Prior to the merger:
- Hoshi offers television and broadband (through a third party).
- SodainaTelecom offers mobility, broadband, and television.
- Geographic Focus:
- We are focused on East Asia and Southeast Asia.
- SodainaTelecom has limited distribution in Southeast Asia, while Hoshi has new distribution in Southeast Asia.
Framework Guidance
A good candidate’s framework will:
- Separate into the three areas outlined in the prompt (Synergies, Differentiated Product, and Growth).
- Show understanding of the industry through thoughtful answers.
- Avoid focusing on profitability.
For Synergies:
Acceptable areas include (with difficulty ratings):
- Personnel (easy)
- Content (hard)
- Supply chain (medium)
- Ad sales (hard)
- IT systems (easy)
- Bundling (easy)
- Collections (hard)
A strong candidate will note that synergies can be both cost reduction and revenue building, and provide examples for each.
For Differentiated Product:
- This is an opportunity for candidates to demonstrate brainstorming under pressure.
- A strong candidate will offer at least three ideas.
- If they struggle, guide with examples such as:
- “Content anywhere” enhancement
- An app that streams recorded content to a phone
- There is no wrong answer for this section.
For Growth Strategy:
A good candidate should include initial suggestions such as:
- Southeast Asia distribution
- Bundling
- Channel optimization (new distribution within Indonesia)
- Other commercial opportunities
Practice Sessions
No practice sessions have been proposed yet. Be the first to propose one!
Note: Accepted practice sessions will be available in your profile under "My Practice Sessions."
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