Industries: Communications
Chesapeake Partners has executed a variety of client engagements, reaching across many different industry sectors.
Case Study: Large International Telecommunications Company
A leading telecommunications firm retained Chesapeake Partners to conduct a strategy and valuation exercise of a potential investment and to provide a “go/no-go” recommendation for the Board of Directors.- Phase I — Strategy and Opportunity Review
Phase I of the engagement included a review of the Client’s existing work product created during its initial review of the investment opportunity and to brief senior executives regarding the opportunity. In addition, the Client asked for a validation of their strategy and the rationale for this transaction. Several strategic and modeling flaws were identified during this phase that Chesapeake was able to address jointly with the Client. - Phase II — Valuation Analysis
The second phase focused on building a complete valuation picture of the business opportunity, starting with a financial modeling exercise. In addition, the project included an assessment of the target’s management, business plan and strategy, expected market opportunity and size, marketing strategy for penetrating the market and achieving revenue goals, review of product offering and technical review, and a review of operating plans designed to achieve strategy. This work effort uncovered significant issues with the target’s business performance vis-à-vis its plan both past and prospective; these findings were incorporated into the valuation and ultimate recommendation. - Phase III — Decision Support
The project was completed with a decision support presentation to the Board of Directors, which addressed valuation, strategic fit, and constructive ideas for enhancing the viability of the transaction.