Case Study: Acquiring Bandwidth to Fuel Growth in a Communications Company
A $20 million revenue communications company faced an urgent need to expand its bandwidth capabilities to meet escalating customer demand. Growth was stifled by market saturation, threatening market position and future revenue streams. Seeking expert guidance, they engaged us for buy-side M&A advisory services.
We worked with the buyer to identify their desired outcomes and ideal target characteristics. After a brief search, we identified a fitting target and negotiated a valuation and structure, culminating in a signed letter of intent.
During due diligence, we examined the seller’s company, and it became evident that the seller’s financials were convoluted, creating uncertainty around the actual value. These financial discrepancies risked inflating the acquisition price and muddied the value. On behalf of our client, we crafted a solution that would result in a fair valuation.
To address these challenges, we combined strategic insight, creative problem-solving, and nurturing guidance. First, we engaged a known accounting firm for specialized forensic accounting to clarify the target company’s financial health. Their quality of earnings report established credibility for a revised valuation and laid a strong foundation for negotiation.
We also facilitated discussions with key stakeholders—including accountants, legal teams, and financiers—to align on valuation and contractual terms that would protect our client’s interests. Our team advocated diligently to ensure the client avoided overvaluation risks and secured a justifiable purchase price.
Our approach, rooted in transparency and meticulous scrutiny, earned respect from all parties involved. Stakeholders valued our dedication to detail and strategic foresight, which allowed each issue to be addressed thoughtfully. This collaborative process instilled confidence, especially for our client, who valued the clarity brought to an initially ambiguous situation.
The acquisition was completed successfully, with a recalibrated purchase price that reflected fair market value. This secured immediate access to a new market and unlocked the potential for future growth. The client’s business experienced an immediate boost in customer satisfaction and retention, projecting a 30% revenue growth over the next fiscal year.
Our client provided the following feedback after the acquisition was completed: “Your expertise and determined advocacy saved my company several million dollars and enabled us to continue our growth trajectory without compromising on value. Thank you for guiding us through this complex journey.”