A telecommunications company generating $100 million in annual revenue sought to expand into a new market within a highly regulated industry where only a select few service providers were licensed to operate.
The company identified an opportunity to enter a growing metropolitan area, but the market’s license was held by another carrier that had yet to provide service. To justify the investment, the business owners needed an in-depth valuation to determine the financial viability and potential return on the acquisition.
As a business valuation expert and fractional CFO, I developed a detailed financial model assessing:
I valued the market opportunity at $38 million and provided a comprehensive financial analysis. To confirm accuracy, the business owners engaged an investment banking firm for a second opinion. Their response was simple:
With confidence in the valuation, the company successfully acquired the market and continues to provide service there today.
This case highlights the critical role of accurate business valuation when expanding into new markets. Whether buying, selling, or scaling a business, strategic financial modeling ensures owners make data-driven decisions with confidence.
Design & Developed by DSpot Creative
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