Our industry experience Our capabilities Our clients Client case studies Evaluation of a broadband opportunity for private equity investor Our Client’s Challenge A leading private equity firm engaged Mercator Partners to help evaluate a $300 million investment in a new technology-based business. The investor needed to understand the viability and market potential for a new technological approach to deploying fiber-optic cables, and the resulting potential value for the target firm that was bringing the solution to market. Mercator Partners’ Action Mercator Partners undertook a comprehensive strategic due diligence of the opportunity, examining in detail the following: nature, robustness and commercial scope of the technology size of the market potential for the target’s offer over time ability of the target firm and its management to influence the broadband ecosystem, fend off competitors, and successfully reach commercial critical mass financial valuation of the firm based on several alternative technology- and competition-based scenarios All of this was achieved in a very short timeframe that met the investor’s tight window of opportunity. The Results After conducting a thorough review of the firm and the potential of its new technology, Mercator Partners recommended that our client invest at a lower valuation. We then helped to negotiate a new price, trimming $140 million from the pre-money valuation.