Case Study: Buyout

Buyout of minority partner

Company Profile

Telecommunications company with approximately $100 million in revenues.

Challenge

The company had 100% ownership in most of its markets, but only 51% in one market. The minority partner made it a difficult relationship. The majority partner wanted to buy the minority interest.

Approach & result

I took a similar approach to valuing this market as in the previous case study, however, we had experience in that market having provided service there for several years.

I determined the value of this minority interest was about $16 million. The business owners were successful in buying out the minority owner and having 100% control of all their markets, which significantly reduced their stress as well.