In the first edition of Kroll Global Telco Infrastructure Update, we focus on the TowerCo Market.
Compared to other mature TowerCo markets, such as the U.S., Europe remains a developing TowerCo infrastructure market. While the strong M&A momentum seen in recent years has slowed due to the impact of COVID-19, deal flow is expected to rebound, supported by recent tower sale and IPO announcements.
We are seeing mobile network operators highlighting their tower ownership and value by carving out separate tower companies, mergers, IPOs or partial sales to independent TowerCos or PE firms.
The TowerCo industry remains an attractive market, with towers offering compelling top-line growth, low capital intensity and premium valuation trading multiples. We highlight the potential valuation differences in multiples caused by recently changed accounting policies.
Finally, we discuss the increasing complexity on estimating cost of capital inputs in the current environment and provide insights for further consideration.