M&A

Northwind Telecom: what is WaveLink worth?

Northwind Telecom, a profitable regional phone, TV and internet operator.

Should Northwind buy WaveLink, and up to what price?

Skills tested

• Structure
• Quantitative analysis
• Exhibits and insights
• Synthesis and communication

Concepts

• profit per customer
• cost synergies
• growing perpetuity
• maximum price
• sensitivity analysis
• customer churn after a deal