1. +
Building Value through
Hosted Solutions
Paul Billingham
1 May 2012

2. +  We help Telecom and Technology
businesses maximise value for their
shareholders
About
 Founded by Adam Zoldan and Paul
Billingham in January 2009 based on
proven experience in delivering value in
the telecoms and technology sector
#1.  Knight CF has completed 36 transactions
Since inception, Knight CF has in the sector in the last 3 years, more
completed more deals in the ICT than any other advisor
sector than any other adviser
 Our team of 7 is based from our London
and Warrington offices
 Our services include disposals and exit
planning, M&A, fundraising, on-going
development and strategic support
 Soon to launch the Venturepreneur
Investment Fund specifically for the
sector

3. +  Buy & build players Daisy, Six Degrees,
GCI, Timico and Adapt have all made
significant acquisitions in 2012
Market Conditions
 Private equity interest in the sector remains
strong (BGF recently invested £10m in
GCI)
 C&W now under offer from Vodafone which
could have a impact in aspects of the
market
 We expect a number of transactions in the
sector to be announced before the summer
 Publicly quoted telcos have seen a 20%
increase in values in the first 3 months of
2012 versus 10% for the FTSE
 Maintel and Colt announced very positive
results, but Alt Net and Daisy have given a
more cautious outlook

4. +  “Quality” of earnings
Buyers‟ Focus  Buyers are conscious of declining
revenues in legacy products and large
one-off revenues
 Very focused on recurring revenues
 Customer „ownership‟ drives value
 Strategic rationale is harder to justify in
the current market
 All of the above will underpin future
performance which is ultimately what
buyers are basing their decision on

5. +
Optimise your value
 Customers drive value, ownership is the
key to maximising the value of each
customer
Do you Trade on
Tailored Critical
know recurring
service partner
them? basis
 Customer Ownership:
“a subjective measure illustrating the
level of reliance a business has on a
supplier”

6. +
Optimise your value
 All buyers look for strong recurring
revenues
 Maintenance, IT services, calls, lines,
broadband, mobiles, hosting
 Cross-selling more services locks the
customer in
 The more often you invoice, the better
 Investment decisions are based on
forecasted revenues. Recurring revenue
streams are predictable and provide
investors with confidence of a return on
their investment

7. +
Hosted vs CPE
 CUSTOMERS are the only source of
growth and value
 Customers drive value; customer
OWNERSHIP increases value
 All buyers look for resilient RECURRING
revenue
 Customers want SOLUTIONS not
technology
 The switch to IP and HOSTED is
irresistible, increasing the VALUE of your
customers and business

8. +
Impact on Value
A hosted solution, adds value:
 It provides recurring and predictable
revenues
 It is a solution that enhances customer
ownership
 It substitutes short term gain to long term
value
 It is here to stay

9. +
Any Questions
Web - www.knightcf.com
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