Our Decision
Valuation Method Rationale
Trading Multiples
Precedent Transactions
DCF
- Industry Average
- Radio One
- Hispanic
- Time Value of Money
- Sensitivity Analysis
- Growth Projections
- Intrinsic Value
- Infinity Broadcasting-Paid 21.5XBCF
- Cox Radio-Paid 18.4XBCF
- Radio One anticipates offering at least 20XBCF
- 30XBCF ceiling
What?
Who?
When?
Strategic Risks and Benefits of Acquisition
Why?
Where?
Risks
Benefits
- The size of acquisition
- Current capacity
- Urbanizing new stations
- New Infrastructure
- Preemptive but not dilutive
- Short-term solvency
- Stock Market reaction
- Advertising
- Niche Market
- Acquiring well-performing stations
- Negotiating leverage
- Expansion in current markets
- Economies of Scale/Consolidation
Decision?
Statement of the Problem
Radio One, Inc.
By: Marshall Perry, Melissa Hancock, Elaine Posluszny, Nick Isbell, Taylor Lopez, Jacqueline Nicol