TriConnex was considering developing a new business that would own and operate the assets it constructed and which would also offer to adopt connection assets installed by independent installers. As a rapidly growing business in the GB electricity, gas and water connections installations market the main focus of its activities was the provision of connections to new housing schemes. However, it was interested in assessing the potential competition in, and financial viability of, expanding its business. IPA was commissioned to provide this analysis.
IPA first identified the main competitors and provided an overview of their key characteristics (e.g. history and evolution, ownership and corporate structures, capabilities, strategy, financial performance, market position and share). A high level assessment of the enterprise values of those companies was then carried out. Finally, IPA assessed the financial and commercial viability of a new business stream in the utility sector for TriConnex. This involved constructing a financial model which provided insights into capital expenditures, operating expenditures and revenues for such a business. The results of IPA’s analysis made it possible for TriConnex to clarify its overall business strategy and enabled it to further develop and refine the proposals for a new business venture.