Case Study: Valuation of Air Thread

Connections
Course: M&A

CASE OVERVIEW :
Summary
Rationale for American Cable
Communication for Acquiring Increase Profitability
Increase Viability
Maintain its market position as competition
was making significant investments to build
their product capabilities
facilitate backward and forward integration of
its business operations
significant marketing cost reduction

What Air Thread Connections ATC can

offer
if acquired?
Value
addition: ACCs fiber lines could
save ATC more than 20% in backhaul costs
Enhanced Product Portfolio : The two
business combined would complement
each other and help them in providing
bundled services
Acquire New Markets: Could help the
companies expand into the business
market thereby reducing their reliance on
the retail/residential customers ensuring
smoother and more stable cash flows.
Increased cost and operating efficiency
Market Leader :acquisition shall position
ACCs position has a market leader in
bundled wireless service provider of multimedia content.