one of the largest cable operators in the U.S., prepared to acquire the AirThread. Connections (ATC), a large regional cellular provider. Although this acquisition. By early , Zimmerman was considering the possibility of acquiring AirThread Connections, one of the largest wireless companies in the United States. This case can be used as a capstone valuation exercise for first-year MBA students in an introductory finance course. A senior associate in the business.

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Help Center Find new research papers in: If you need this or any other sample, we can send it to you via email. Furthermore, expanding into the business segment would help each firm increase its network utilization and, as a result, increase its Do cost efficiency.

Airthdead addition, the handwriting was on the wall in terms of service offering convergence. Heilprin, Illinois Institute connectiins Technology Finance Professor and Managing Director of 59th Street Partners prepared this case solely as a basis for class discussion and not as an endorsement, a source of primary data, or an illustration of effective or ineffective management.

Those networks are expected to be able to deliver not only wireless connectjons but also internet service with throughput similar to that which is currently offered by cable providers.

Zhang believed that the combined company would be able to attract business customers now that wireless, wire line, and internet service could be offered by the same provider.

The case includes two interesting characters — Zimmerman and Zhang, but contention among the characters is not the primary aim of the case. The wider debate is about how and when certain valuation methodologies should be employed. Register Submit to us Airtnread writing resources Case writing scholarships How to submit your case Online case submission Why submit your case to us? System Operating Expenses By continuing to use our site you consent to the use of cookies as described in our privacy policy unless you have disabled them.


Erik Stafford and Joel L.

Valuation of AirThread Connections

You can change your cookie settings at any time but parts of our site will not function correctly without them. Wider debate The case includes two interesting characters — Zimmerman and Zhang, but contention among the characters is not the primary aim of the case. This case, though based on real events, is fictionalized, and any resemblance to actual persons or entities is coincidental.

How about make airhtread original? Operating markets are markets for which the company provides service.

Valuation of AirThread Connections | Zakir Pashayev –

Begenau, Juliane, and Erik Stafford. The authors Erik Stafford and Joel L. Heilprin Erik and Joel explain what winning this award means and offer some case writing advice.

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We will write a custom sample essay on Valuation of AirThread Connections specifically for you. When By earlyZimmerman was considering the possibility of acquiring AirThread Connections, one of the largest wireless connectioons in the United States.

Table 2 Return on Net Operating Assets 3. During that meeting, Airhread Bianco pitched the idea of op American Cable buying out AirThread Connections, a large regional cellular provider. The smaller companies would eventually be weeded out conjections industry consolidation. Finance questions Finance questions Mercury Athletic. First, American Cable Communication ACC and AirThread could help each other compete in the industry that was moving more and more bundled service offerings.

Juliane Begenau and Erik Stafford. Second, without thorough due diligence, it would be impossible to project the free cash flows for those minority interest equity investments. All fields Reference no.

With the rapidly increasing costs of acquiring new customers and the high penetration rates in video and high speed internet, the group surmised that the only way to achieve meaningful customer growth would be through additional acquisitions. In addition, students analyze the effects of non-operating assets on valuation. It offered services in more than markets across five geographic regions. The increased size would not only help insure that ACC would remain a viable industry player but would also help improve profitability through better network utilization.


View airthhread full list of featured cases. A senior associate in the business development group at American Cable Communications, one of the largest cable companies in the U. The basic premise of the AirThread acquisition was threefold.

We assume the negative growth rate in is abnormal, so we remove this rate from our calculation. Jurek and Erik Stafford. As seen in Table 3, compared with its primary rivals, AirThread had lower operating and EBITDA margins, which largely reflected the previously discussed competitive disadvantages. Furthermore, the company believed that its core competency as an acquirer would continue to play a fundamental role in its future success.

In turn, this was a limiting factor for future growth and increased network utilization. The Case Centre is a not-for-profit company limited by guarantee, registered in England No and entered in the Register of Charities No How about receiving a customized one?

However, unlike Connwctions, AirThread was feeling the pressure No more immediately in the form of higher customer acquisition and retention costs, plus slower growth. The very strong investment performance of passive maturity transformation strategies over this period may mask the underperformance of the specialized bank activities.

Over the period —, we find that 1 unlevered bank assets underperform passive portfolios of maturity-matched U.

AirThread Connections Case

A conncetions portion of wireless network operating costs related to moving traffic from cell towers to central switching offices using either landlines leased from competitors or technically cumbersome microwave equipment.

As a result, Jennifer believed that the investments could be valued using a market multiple approach3. Download the case Educators can login to view a free educator preview copy of this case.