Iridium Llc Projections & Valuations

Iridium LLC filed for a bankruptcy after carrying on its telecomm business for several years, being unable to attract the customers and having a low product lineup, Iridium also had major flaws in its marketing and sales department. Moreover, its business policies were not so good as a result of which it finally had to give up after suffering a deep financial crises. With market share of 5 voice subscribers and no paging subscribers, it had to happen and it happened. The number of subscribers shows the customer satisfaction and the quality of products that Iridium sold.

Projections & Valuations

Iridium is a venture of Motorola, although Iridium is now going through a bad phrase but its technical's are quite sound. The telecom industry is growing sector and is the most promising industry in the coming times. In future it may such happen that along with the voice services and paging services, there may be many other services that may be provided by the telecom companies and such services may change the way, the telecom company's work.

Coming to the projections used in Exhibit 5, there is a huge growth scope in overall financial as well as the statistics of the company. The projections are projected keeping in mind the real term scenario of the company considering the fact that the company has accumulated losses as of now, so there is a tax adjustment done for the preceding 2-3 years and the EBITDA has a gradual rise starting from negative figures. Otherwise also, the telecom industry do suffer losses initially for setting up their customer base and huge initial investments, thanks to government policies which has given some relief to the telecom industries in the initial years. It is apparent that there is a constant improvement in the technology, given the fact that there is a constant rise in the projected assets of Iridium, it is assumed that the additions to the assets is for the improvement scope that Iridium may work upon.

Mere projections of the financials won't work. Iridium has to make sure that it lives up to the expectations of the projected figures. Having a close look at the market and its growth, it seems that it is not very difficult for Iridium to attain these projected figures successfully, but looking at the past and the negligence that was showed up by Iridium it is very difficult to generate revenues if the same attitude continuous. The method for the projections of the financial arena here done by the book value method and the same is followed for the analysis of the projected financials.

The determinants of the value can be classified into financial and non-financial category. Although, all the determinants are important for the analysis of the financial statements, Net Income can be one of the most important financial determinants followed by the Revenue. On the other hand, the number of subscribers (both