The Situation
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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Our 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.
![](/contentassets/b5a80158a82e4cd0a20c98d83cf20a10/id_26_2.gif)
Our Recommendations
Bain concluded that TideTV could succeed in the long distance market and recommended that EquityCo proceed with its plan.
![](/contentassets/b5a80158a82e4cd0a20c98d83cf20a10/id_26_3.gif)
The Results
EquityCo purchased TideTV and sold it less than two years later for 2.5x the original equity and realizing a substantial IRR.
![](/contentassets/b5a80158a82e4cd0a20c98d83cf20a10/id_26_4.gif)
* We take our clients' confidentiality seriously. While we've changed their names, the results are real.