Transforming a Leading Canadian Telecom Group

A major Canadian telecom group engaged FTI Consulting to support the repositioning of its business in response to an unsustainable legacy division and excessive debt burden. Absent a successful solution, the company faced the prospect of formal restructuring proceedings and the potential loss of stakeholder value. Our restructuring experts initially helped identify and assess restructuring alternatives, validate the corresponding business plan and model and assist with execution of the selected strategy leading to the successful recapitalization of the business. As the engagement evolved, our role expanded to include strategic carve-out and cost optimization services specifically supporting the transformation of the business.

Our Impact

FTI Consulting led the identification of more than $50 million in potential upside from the business plan across infrastructure optimization, network and operational excellence, asset management strategies and back-office efficiencies.
FTI Consulting developed a comprehensive and consolidated roadmap, which included target timelines, resources allocation, incremental one-time and ongoing costs-to-achieve.
The group received more than $500 million in new capital investment from existing stakeholders as part of its recapitalization.

Our Role

FTI Consulting deployed seasoned telecom, IT, finance, HR, carve-outs and transformation experts to rapidly identify cost-saving opportunities and develop a focused roadmap with actionable cost optimization plans across key workstreams.
The team performed an in-depth carve-out analysis to assess the financial and operating requirements necessary to transition a key business unit to a standalone operating model.
We analyzed post-carve-out impacts on the client businesses to address and quantify other potential operating and financial considerations, included stranded costs, at each level of the business (e.g., operating model, staffing and digital tools).
Our experts developed intricate models and detailed analyses to evaluate and validate the management team’s business plan and forecast capital requirements, current and future cost structure considerations and growth assumptions, including for existing and emerging business units.