Case Study Analysis of Apex Investment Partners



Case Study Analysis of Apex Investment Partners

Question No. 1

AccessLine Technologies operates in the industry of telecommunication in Washington. It is responsible for initiating the progress of the first commercial system delivered the quality communication network in the year 1983. This concept was known as One person one number in which all kind of communications is achieved using a single number. Its distinctive product increased sales and fees for the firm and improvised its foreign relations. The company commercialized its technology by using strategic alliances. The company formed its first corporate relationship with McCaw Cellular Company in 1989. McCaw assisted company in raising required funding. It became equity investor in the market in 1994 (Lerner, J., 1997).

Investing in AccessLine is good as it launches a unique and distinctive product in the market to combat competition at the cost of moderate expenditures. The investment over all had a minimum of risk as projected cash flows were shown as positive in 1995. Furthermore, the company possessed competitive combination of business and technological expertise to meet the required outcomes. AccessLine had already raised $15 million for sake of private placement.

The unattractive facets of this investment included complicated valuation of the company as there was certain degree of uncertainties associated to the return. Since, AccessLine believed in being priced at premium and Apex contributed about 2 million as part of venture. The terms and conditions decided by the Accessline's President were similar to that to company's Series A Financing therefore, the determination of required protection became quite complex in this case for Apex (Lerner, J., 1997).

Question No. 2

AccessLine required additional funding for supporting its operations and high growth. The firm itself managed to raise $16 million which it intended to use for acquisitions, and developing strategic partnerships. One ...