Apex Investment Partners A April 1995 Case Solution

Case ID: 296028
Solution ID: 5253

Words: 1060

Price: $19

Case Solution

The accomplices of Apex Investment Partners are looking to give financing to Accessing Technologies, a little firm represent considerable authority in giving "One Person, One Number" telecom administrations. The arrangement of the terms-and-obligations of the partnership, along with the pricing, are seen to be tough.

Excel Calculations

·         Assessment of AccessLine                                          

·         Valuation Model for AccessLine                                                                                                               

·         Adjustment to Growth in revenues =

·         Adjustment in profit margins =

·         Cap Exp to revenue growth =

·         Net working capital to revenue growth=

·         Beta (use avg of 3Com and Boston Tech)

·         Rates

·         Equity premium =

·         Risk free rate =

·         Cost of equity capital model = risk free rate + [beta * (equity premium)]

·         Long term growth (terminal value) =

·         Discounted Terminal Value

·         Cost of equity capital

·         Value in 1995

·         Existing Shares

·         Per Share Value

Questions Covered

Summarize the operations and past funding used by AccessLine. For a venture capitalist, does AccessLine appear to be an attractive investment opportunity? Identify the attractive and unattractive aspects along with the nature of the risks associated with the company.

Discuss why the valuation of AccessLine is important to understand and what stakeholders are concerned with this value. Complete the valuation model template presented within the help spreadsheet. Include the model in your report document and describe the steps and the results.

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