4263 REV: APRIL 27‚ 2012 ERIK STAFFORD JOEL L. HEILPRIN Valuation of AirThread Connections In early December 2007‚ Robert Zimmerman‚ senior vice president of business development for American Cable Communications (ACC)‚ was in his office sifting through a number of investment banking proposals related to potential acquisition targets when he paused to consider the recent presentation made by Rubinstein & Ross (R&R). Rubinstein & Ross was a boutique investment bank with a strong reputation
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Assignment 4 Group Assignment Airthread Connections Prepare the Airthread Connections case using the following questions as a guide: 1. What methodological approach (APV‚ WACC‚ FTE‚ or some combination) should Ms. Zhang use to value Air Thread? Hint: It may be possible to use more than one techniques simultaneously. The valuation of the Airthread Connections is conducted to assist American Cable Communication to decide if the acquisition of the Airthread Connections should be processed to achieve
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acquirer. Air Thread Connections (ATC) is one of the options available to be acquired because of ATC owns greater technical resources in wireless service‚ and it is one of the largest regional wireless companies in the US. This report will analyse the initial valuation of ATC based on discounted cash flow analysis as well as market multiples approach‚ based on the analyse‚ it will decide whether the acquisition should be made or not. Body The valuation of Air Thread Connections can be divided into
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AIRTHREAD CASE Develop a projection of debt-free FCF for AirThread using the information provided in the case. Estimate a terminal value considering both the GG model and an exit EBITDA approach. Explain how you calculated g for the GGM. Also explain your final choice of terminal value. Develop a WACC for the acquisition. Assume an industry average D/E ratio. Do not use a private company discount as discussed on page 7. Calculate the value of Airthread operating assets based on the
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Q.1 Describe the key issues that need to be considered in valuing AirThread Connections. In particular‚ the following issues must be considered: Valuation of cash flows in the relevant period Estimating terminal value A. Procedure 1. The cash flows (without synergy) were taken as provided for 5 years along with adjustment for Net working capital changes. 2. WACC was calculated for various D/V ratios 3. Terminal Value of the firm was determined using P/E Multiple of 19.1 4. Valuation done for the
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looming competitive threat from advance wireless networks based on 802.16n standard for mobile WiMAX. Those networks are expected to offer not only wireless telephony but also internet service which is also the main product of ACC. Problem for AirThread Connections (ATC) 1. ATC faced a cost disadvantage relative to its main wireless competitors owned by ILEC’s. High operating cost is resulted from moving traffic from cell towers to central switching offices using either landlines leased from competitors
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The overall connection that I chose to analyze in this report was the importance of marriage‚ as it is an idea that is present in almost everybody’s life‚ and it is something that heavily impacts the nature of a society. Marriage is seen in society in both positive and negative ways‚ involving emotions from true love to bitterness. In the texts A Thousand Splendid Suns‚ by Khaled Hosseini‚ The Ballad of Calvary Street by James K Baxter‚ The Silk by Joy Cowley and Atonement directed by Joe Wright
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EXECUTIVE SUMMARY Fresh Connections is a fresh food manufacturer that provides meal solutions products to retailers‚ restaurants and co-pack companies. After a successful stint of one year‚ Fresh Connections is suffering from variety of short term‚ operational and strategic issues. In the immediate future‚ cash liquidity of the company is a problem and it is recommended that take the deal with the co-op client to alleviate their financial situation. Moreover‚ they are in the position of high financial
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Cash Connection 1. What are the dominant economic characteristics affecting the payday lending industry? The industry for short-term cash loans (payday loans) grew in the early 1990’s because of the shift in financial services marketplace. The cost structure of the market rose due to bounced checks‚ overdraft protection fees‚ and late bill payments penalties. Second the trend of regulation of payday advance service that allowed protection for consumers. To avoid such cost‚ payday loans were
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Valuation of AirThread The valuation of Air Thread is intended to present to it’s potential acquirer‚ American Cable Communication (ACC) for consultation on decision of acquisition purpose. According to the case study‚ American Cable communications is a large and healthy cable operator which provides the services and products that related to internet‚ video and landline telephony. The demand of the ACC is high in America as for instance‚ there are around 48.5 million households installed the ACC
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