This Tampa-based VOIP provider had been part of a private equity group’s larger acquisition plan less than a year earlier, but was losing customers and money.
The company no longer fit the long term plans of the ownership group and its interim CEO retained Equity Partners to market and sell the asset. Given the distress, a competitive process was needed to force bidders to pay reasonable multiples of recurring monthly revenue or number of subscribers.
A quick but extensive marketing process was conducted by Equity Partners, offering the company as an entirety, or broken into specific regions by geography. Equity Partners generated multiple offers for the company.
After several rounds of negotiations and further bidding, an offer was selected, a sale was completed, employees were retained, and operations continued.