Situation: Major sports television distribution company needed to acquire a presence in the number two national televisions market area. The current owner of the station was requesting a price that was 200 times the cash flow.

Results: Restructured the acquiring company to increase cash flow to $20 million and deliver a purchase price that reflected a normalized 10 times cash flow. The strategic value justified a premium value but our management team revised the operation’s results and brought the company in at a normalized value. The business was consolidated and resulted in a three-fold increase in the overall value of the parent company.

Industry: Regional Sports Network

Situation: Small northwestern US-based sports television network was struggling to produce results. Our team consolidated the business into a holding company of networks and spread the operating costs among several users. This resulted in lower overall operating costs and higher profitability in a tough business environment.

Results: Company was later acquired by a purchaser along with other networks in the holding company and became a profitable part of the portfolio.

Industry: Local Sports Network

Situation: Network had poor financial and operating performance. Results were marked by limited market penetration while expenses exceeded revenues. Viewer ratings were low which resulted in limited advertising sales.

Results: Network was associated with peer group companies. Resources were shared to reduce expenses and open up advertising opportunities. These changes resulted in the unit attaining profitability.

Industry: Private cable and telephone service provider

Situation: Historically marginal performance in both finance and operational arenas. The company lacked market presence and was too diverse in geographic coverage to succeed.

Results: Merged company into a more focused and locally operated CLEC. The revenues have increased and the company is EBITDA positive. Continuing relationship with Corporate Smoke Jumpers will produce growing revenues and profitability in the near term. This project has been on going for over one year.