• +91 6366 092 750
  • rickysaraf@hillpineconsulting.in
  • Georgia 30228, USA
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Supporting bolt-on acquisitions for a UK- based telecom distributor

A UK-based telecom distributor, backed by a private equity firm, where we supported several bolt-on acquisitions across the UK.

The acquisition targets were typically small resellers, valued at an enterprise value of £3–5 million, primarily based on their recurring gross profit.

£3-5m

Typicationtar price value per target.

Multiple

Belt or Hart ristations neross the UK

Recurring GP

Recurring GP Primary value driver

Problem Statement

  • Specific requirement of the client to present target data based on client’s reporting methodology;
  • Evaluating whether the recurring revenue is stable, contractually locked-in, and diversified enough to justify acquisition and integration;
  • Recurring GP a key matrix for valuation that needs to be determined based on Client’s definition, rather than Target’s definition
  • Target lack sophistication and manpower to help us carry out the specific analysis

Hillpine’s value proposition

Data preparation & structuring

  • Ensured data harmonization between the financial system and other operational software
  • Building and mapping revenue and cost data at a transaction level involves creating a granular database that captures every individual transaction, categorized by client type, and structured across multiple data fields.

Resolution

  • A separate team involved in the preparation/conversion of Target data as per the Client’s methodology, including recurring GP. The work involved review and classification of 10k line items, and at times generating reports from Target’s reporting system
  • Separate DD team to challenge and analyze the financial information

Overall management of the transaction/project

  • Scheduling and steering discussions with prospective bidders;
  • Leading and managing the Q&A process and expert sessions;
  • Maintaining consistent communication with the client at every phase of the transaction

Data preparation & structuring

  • Ensured data harmonization between the financial system and other operational software
  • Building and mapping revenue and cost data at a transaction level involves creating a granular database that captures every individual transaction, categorized by client type, and structured across multiple data fields.

Resolution

  • A separate team involved in the preparation/conversion of Target data as per the Client’s methodology, including recurring GP. The work involved review and classification of 10k line items, and at times generating reports from Target’s reporting system
  • Separate DD team to challenge and analyze the financial information

Key sticking/ pain points

  • Specific requirement of the Client to present Target data based on Client’s reporting methodology;
  • Evaluating whether the recurring revenue is stable, contractually locked-in, and diversified enough to justify acquisition and integration;
  • Recurring GP a key matrix for valuation that needs to be determined based on Client’s definition, rather than Target’s definition

Overall management of the transaction/project

  • Scheduling and steering discussions with prospective bidders;
  • Leading and managing the Q&A process and expert sessions;
  • Maintaining consistent communication with the client at every phase of the transaction

Transaction overview

  • A UK-based telecom distributor, backed by a private equity firm.
  • A-telecom distributor, backed by a private equity firm.
  • A UK-based telecom distributor, by a private.

Key sticking/ pain points

  • Specific requirement of  based on Client’s reporting methodology;
  • Evaluating whether the recurring revenue is justify acquisition.
  • Recurring GP a key matrix for valuation that needs to.