Outerlink Corporation

Private Equity. Case Summary assignment: Outerlink Corporation Outerlink corporation crinkle fundamentals are sound and self sustaining but the pecuniary situation is critical and on the verge of collapse. Zero coiffe Capital should continue to search for a strategic M&A partner as an exit schema while extending the life the corporation by funding and maintaining financials to intimidate the company afloat for the next 12 months. With everyplace 13 years of experience, the company is a sizable goodwill addition to any acquirer. Also, with the disappearance of most of its rivals, its an attractive skill target in a rapidly growing commercialise. The mean can be achieved by enacting draconian measures to reduce the abridge rate and marinating the target revenues for 2003 of $3.9 one million million million through concentration on Aviation terminal sales. I think 1 million of operating losing can be achieved. In addition to exclusively cuts from the previous year, the company can literary halt R&D activities. With the two department closed (marketing and R&D), the operating loss is approximately 1 million. With 400,000 in cash, Outerlink will need another 600,000 to stay fluid for a year. In my opinion, this price is worth paying by range in capital to avoid the possibility of a $13 million write down.

Several investment strengths exist for Outerlink Corporation. These include a strong customer growth in Aviation terminals averaging over 32% annual growth since 1999 and an increase in engage for locating high quality assets throughout the world. In a post 9/11 environment, almost all woodworking plane operators were feeling for the ability to instantly locate their planes. Another mark strength is the number of years in existence that shows a track record of proven technology and lifecycle development trouble which are vital to any potential acquirer who is looking to integrate their existing technology with Outerlink. Finally, in a market with very few players and very high entry barriers, Outerlink... If you involve to get a full essay, order it on our website: Ordercustompaper.com

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