A cable TV acquisition nets 70% IRR

Client Results Story

Opportunity

EquityCo, a leveraged buyout firm, was considering purchasing TideTV, a regional cable company. EquityCo's plan was then to diversify beyond the cable television business into the long distance telephone market. This seemed to represent a promising growth opportunity, but was it realistic?


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Next Approach

Approach

With a one-month evaluation window, Bain focused on four key areas to quickly determine the economic value of purchasing TideTV and the likelihood of its successful entry into the long distance market.


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Next Recommendations

Recommendations

Bain concluded that TideTV could succeed in the long distance market and recommended that EquityCo proceed with its plan.


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Next Results

Results

EquityCo purchased TideTV and sold it less than two years later for 2.5x the original equity and realizing a substantial IRR.


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