Apex Investors Case Study

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Apex Investors – Case Study Question 1 Is AccessLine an attractive investment opportunity? AccessLine’s vision was to assimilate cellular phone, paging, voice messaging, and traditional telephone services. With a couple of strong patents; “Remote Access Telephone Control Systems” and “Telephone Control System with Branch Routing”, AccessLine was equipped as an industry leader with first-to-market technology services. By linking state-of-the-art computer capability with a telephone network, the AccessLine system combined the power of computer technology with a telephone number. AccessLine had already gone through one round of financing and were producing positive cash flows. With a strong product and positive historical performance, it makes AccessLine very attractive to investors. Question 2 How has AccessLine financed itself to date and why have they chosen this strategy? AccessLine’s initial financing was two-fold. McCaw Cellular Communications financed a fraction of the firm’s initial financing as a result of launching AccessLine’s product. Kranzler and Fuller had deep seated relationships at McCaw making the license and product launch a natural fit for financing. Realizing the product was better marketed through carriers, AccessLine under took multiple carriers as a secondary form of financing. Ameritech, Bell Atlantic, Southern New England telephone and Bell Canada marketed the AccessLine services under their own brand names and in exchange for a higher fee, a phone company could be granted exclusive franchise rights for a particular market. I believe AccessLine chose to market their product to telephone networks through a series of franchise networks because the telephone networks had closer connections to the end-user of their products. Since at the time this was an up-and-coming technology it was very attractive to the telephone networks and
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