Alto Case

1. Identify the main players in this case study (at the firm level) and discuss their motivations and objectives.

The Valuation of AirThread Connections while concerned with two entire companies focused on a few key individuals. These individuals were the key elements to the valuation of AirThread in preparation for a potential acquisition by American Cable Connections (ACC). They are as follows: Robert Zimmerman is the senior vice president of business development for ACC, Elliot Bianco, employee of Rubinstein & Ross investment bank, and Jennifer Zhang, senior associate completing the valuation of AirThread for Zimmerman. Each individual has a different role when it comes to the case study and hence has different motives.

Robert Zimmerman is mainly concerned with the longevity of ACC and being successful in his current position. He most likely has an incentive plan that is tied to company stock and earnings performance as well. Since ACC has been experiencing declining Net Income and increasing costs Zimmerman’s interest in ways to reduce costs and increase producitivity are becoming more and more apparent. It is also his concern that ACC finds new ways to maintain market share and penetration as well as be able to offer services at low costs and potentially offer bundled services like its competitors. These concerns are very important to Zimmerman and will continue to be into the future.

Elliot Bianco simply wants the opportunity for Rubinstein & Rose to benefit from the acquisition because ACC will need a significant amount of cash via a loan that will pay interest back to the bank. Therefore, Elliot realizes the potential return on an investment deal as large as this one.

Jennifer Zhang has been tasked with valuing AirThread for Zimmerman. As an up and comer she has a lot to prove, but also has the ability to do it. Jennifer wants to complete the valuation and provide the best proposal possible. Her career at ACC is on the line and she recognizes the...