EquityCo: Cable TV acquisition nets 70% internal rate of return
Case introduction
Situation
EquityCo is a large private equity firm that was considering the acquisition of TideTV, a regional cable company.
Complication
EquityCo wanted to use TideTV as a springboard to diversify beyond cable television into the long-distance telephone market—a promising growth opportunity.
Key question
Would the acquisition of TideTV present the opportunities EquityCo was looking for in the long-distance telephone market?