Internet Acquisition Highlights

Potential acquisition and management of advertising network in the internet-based advertising industry.

Issues

• Major internal political battle for control of new ad network brewing between divisions.
• Politics and inconsistent information caused a wide range in acquisition valuations (between $200 million and $2 billion).
• Unrealistic projections for future growth in ad network revenue.

Provisdom's Solution

• Required only 2 days for complete analysis.
• Solved for single maximum acquisition value of $750 million.
• Provided strategic rationale to short-circuit political infighting.
• Indicated significant shareholder value for continuing ad network development even if the acquisition fell through.

Results

• Narrowed maximum acquisition price from between $200 million and $2 billion to a single price of $750 million.
• Time required: 2 days + 3 hours of client time.