Industry: Sports Television Network
Situation: Major sports television distribution
company needed to acquire a presence in the number two national
televisions market area. The current owner of the station was requesting
a price that was 200 times the cash flow.
Results: Restructured the acquiring company to
increase cash flow to $20 million and deliver a purchase price that
reflected a normalized 10 times cash flow. The strategic value justified
a premium value but our management team revised the operation's
results and brought the company in at a normalized value. The business
was consolidated and resulted in a three-fold increase in the overall
value of the parent company.
Industry: Regional Sports Network
Situation: Small northwestern US-based sports television
network was struggling to produce results. Our team consolidated
the business into a holding company of networks and spread the operating
costs among several users. This resulted in lower overall operating
costs and higher profitability in a tough business environment.
Results: Company was later acquired by a purchaser
along with other networks in the holding company and became a profitable
part of the portfolio.
Industry: Local Sports Network
Situation: Network had poor financial and operating
performance. Results were marked by limited market penetration while
expenses exceeded revenues. Viewer ratings were low which resulted
in limited advertising sales.
Results: Network was associated with peer group
companies. Resources were shared to reduce expenses and open up
advertising opportunities. These changes resulted in the unit attaining
Industry: Private cable and telephone service provider
Situation: Historically marginal performance in
both finance and operational arenas. The company lacked market presence
and was too diverse in geographic coverage to succeed.
Results: Merged company into a more focused and
locally operated CLEC. The revenues have increased and the company
is EBITDA positive. Continuing relationship with Corporate Smoke Jumpers will
produce growing revenues and profitability in the near term. This
project has been on going for over one year.