Channel M&A specialist firm, Knight Corporate Finance reports that the telecom channel is bucking the trend in the harsh economic climate. Founders Paul Billingham and Adam Zoldan perceive telecoms as one of the few success stories in current times, thanks to strong recurring revenue streams built by the SME Reseller Community.
“We are closely monitoring the conditions in real terms and whilst virtually every other sector has experienced a massive decline in value, the telecoms channel has seen valuations remain firm with a high level of deal activity,” said Adam Zoldan. “When you compare the performance in the media, property, retail sectors the difference is astonishing. When times are hard there is nothing better than reliable, recurring revenue streams that the SME reseller community has built so successfully. We have a broad range of buyers that are currently looking for acquisitions and we know the likely deal structure that clients will be presented with.”
Alastair Mills, CEO of Spiritel plc said: “Despite the unprecedented state of the economy, there are still deals to be made in our sector and for the right assets, acquirers will still pay sensible prices. We have found that Knight CF introduce quality companies, they understand and professionally manage the sale process and directors on both sides of a transaction find that their advice is both commercial and realistic.”
Rather than simply brokering deals, Knight CF works with its clients to maximise the value of their assets in a way that the benefits can be clearly appreciated by a potential acquirer, and this translates to price. Paul Billingham said: “We specialise in helping companies make the most of their business, both in the short and long term, as we know what buyers are looking for. Even if resellers are not looking to exit yet, steps that they take now will impact on the value they ultimately achieve in years to come.”
Paul Billingham said: “Every deal has its particular issues but the skill is understanding where the real value lies in your business, and securing that value. Everyone has their own perception on what their business is worth and there is a whole variety of metrics and methodologies used to value companies. But in reality there is only one value of your company, and that is the price that someone will pay for it.”