Situation
United Telecom provided pre-paid and post-paid calling card services, retail call shops and long-distance telephony services in the UK. United Telecom retained ARC Associates to develop financing and strategic alternatives, and to prepare its business plans and financial models.
Approach
A full valuation and strategic alternatives review was undertaken. After the development work, United Telecom shareholders retained ARC Associates to seek an investment partner to assist in funding the further growth of the business.
ARC Associates prepared documentation and contacted a number of potential investors, both trade and investment-focused. ARC Associates developed a shortlist of interested parties and assisted in the negotiation of terms for a full acquisition of the company.
The Transaction
United Telecom shareholders agreed to sell their shareholding to ACC Long Distance (UK) for an undisclosed sum. The transaction was structured in two instalments: an initial cash payment and an earnout based on the future performance of the company.