Channel M&A specialist firm, Knight Corporate Finance, reports that the telecom channel is bucking the trend in the harsh economic climate.

Founders Paul Billingham and Adam Zoldan perceive telecoms as one of the few success stories in current times, thanks to strong recurring revenue streams built by the SME reseller community.

"We are closely monitoring the conditions in real terms. While virtually every other sector has experienced a massive decline in value, the telecoms channel has seen valuations remain firm with a high level of deal activity," said Zoldan.

"When you compare the performance in the media, property, retail sectors the difference is astonishing. When times are hard there is nothing better than reliable, recurring revenue streams that the SME reseller community has built so successfully."

Rather than simply brokering deals, Knight CF works with its clients to maximise the value of their assets in a way that the benefits can be clearly appreciated by a potential acquirer, and according to Billingham this translates to price.

He said: "Every deal has its particular issues but the skill is understanding where the real value lies in a business, and securing that value. Everyone has their own perception on what their business is worth and there is a whole variety of metrics and methodologies used to value companies. But in reality there is only one value of your company, and that is the price that someone will pay for it."

Alastair Mills, CEO of Spiritel, commented: "Despite the unprecedented state of the economy, there are still deals to be made in our sector and for the right assets, acquirers will still pay sensible prices."