Mission Statement
Our mission is to become the leader of "Small Town" and "Rural" franchised cable systems. The strategy is to continue to acquire EBITDA profitable franchise cable operations. inZon's strong value proposition is that we can offer theses operators the major advantage and significant economies of scale by being part of a large, consolidated cable group, that will bring far more value to them from their cable systems.
Overview
Today most small-town cable operators have between 5-25,000 subscribers. These operators are usually the only game in town and provide video and Internet services. The normal staffing level is 4-10 people and who usually do a lot of the fieldwork themselves. There is normally no ability to reduce costs through centralized back office faculties, no economies of scale in negotiating pricing and - most important - the exit strategies that are available to these operators are extremely limited. The primary method is simply being sold outright to another small town operator at a discount.
Our strategy is to acquire these systems for cash and stock. One requirement is that the owner/operator stays on as the general manager with a five-year employment agreement. The acquired operator also becomes a shareholder of the parent company, with great incentive to further the business.
Our inZon team is made up of four seasoned cable operators, three of which have a multi-million dollar successful track records of consolidating private cable systems, a corporate administrator, a CFO who has spent decades in the banking industry, as well as an experienced investment banker. Our goal is to acquire as many subscribers as possible within a three-year period.
With consolidation the value-added proposition is that we will add to the bottom line of each of these operators with savings from billing, cable programming fees, equipment purchases, customer services and other key factors.
You can download a 29 page Cable Overview document that covers this subject in more detail.
Exit Strategy
There are several significant options for the company. The first, of course, is being part of a public company. Being a public entity greatly enhances the value going forward. The second option is to be acquired by a large cable operation or a telecom company. With the need for telecom companies to catch up to "Triple Play" cable companies - there would be a premium for subscribers.