ACCESS TO CAPITAL

Challenge

A telecom client with a $40 million market cap was assembling financing for the purchase of a broadband company that would significantly increase the scope of its business by tripling revenues and substantially expanding EBITDA. Management needed to secure favorable equity alongside debt in order to finance the acquisition.

Solution

IMS had been working with the client to broaden their investor audience and to credibly communicate their progress to Wall Street.

In reviewing the client’s options, IMS identified potential interest from two investors the client had previously met during its ongoing investor relations outreach activity. After subsequent meetings, these funds invested $15 million above the market.

Result

Client secured the necessary capital with recognized long-term investors at favorable terms. The acquisition was a cornerstone of their successful shift to a higher margin business model. Through IMS introductions, 4 of the 5 top institutional holders were added.