Helm Partners Buying Convergent Amid ‘Aggressive’ Growth Strategy
… would accept a deal in this environment.
“I think right now the multiple is as big as it’s ever going to get,” he said.
Private equity (PE) has heavily targeted the solutions brokerage/distributor space in 2021. Most recently Avant accepted a hefty investment from Pamlico Capital. Last year Telarus took funding from Columbia Capital.
Radizeski pointed to PlanetOne, TBI and Sandler Partners as three large companies that have not yet announced an acquisition or investment.
“I can’t see [PlanetOne CEO] Ted [Schuman] or [TBI president] Geoff [Shepstone] taking PE money because then they would have to answer to someone,” Radizeski said. “[Sandler Partners founding partner] Alan [Sandler] might if he wants to continue to grow — if he hasn’t already.”
Indeed, TBI has vowed over and over again to remain debt-free and private equity-free.
“We believe we’re the last best place to put your business,” said Mike Onystok, TBI’s senior vice president of operations.
PlanetOne’s Ted Schuman has stated that he enjoys owning the business but is hypothetical open to a deal.
“I’m not saying that I would never sell. Because anyone who tells you that is lying,” Schuman told us earlier this year.
Radizeski said the tiers between big, regional and small brokers will be widening even further as consolidation continues.
“There is an opening for small or regional [partner] to fill a need in the space that the big folks are creating since bigger never means better in telecom,” he said.
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