Broadband Networks, Inc.
Indiana-based provider of broadband access, focused on un-served and underserved small and rural markets in Indiana and Ohio.
A group of investors (Broadband Networks) had bought the predecessor’s assets through a Chapter 11 reorganization and operated for about a year. The legal costs related to the bankruptcy were much higher than anticipated and made it nearly impossible for the company to be profitable.
Equity Partners was retained to explore strategic options for the company and quickly completed a 45 day marketing process. There was significant going concern interest in the company and a stalking horse bidder was selected in preparation of an auction among qualified bidders.
After 25 rounds of competitive bidding, an offer for the entire network was selected and, after a very short transition period, closing occurred with minimal interruption to operations. Shareholders received a significant return on their investment as well as a 3 year earn out from the ongoing business.