Chess aims to be acquisition grand master

Acquisitive VAR to continue buying spree after increasing acquisition facility to £10m

Btesh: resellers are using the sale of their telecoms base to fund expansion into other areas

VAR Chess Telecom is seeking more buyouts after announcing it has begun 2010 with a £10m acquisition warchest at its disposal.

The fast-growing telecoms reseller claims 39 deals over the past five years have transformed it into a well-oiled ‘acquisition machine’.

Corporate director Richard Btesh stressed that 120-strong Chess – which specialises in acquiring customer databases – favours deals with successful, well-run businesses.

“I am delighted to say we have now increased our facility for acquisitions to £10m,” he said.

“In my experience people sell their businesses when they are bored or have cash flow problems. This is not the best time - it is usually better to sell a business that is performing well, and as a buyer I have no problem in paying an enhanced price for a better-performing business.”

Btesh argued that more owner-managers would be tempted to sell up before 5 April, when many commentators believe the government may change the capital gains tax rules again.

“I have also noticed a trend for resellers to use the sale of their telecoms base as a method of funding expansion into other areas” he added.

“In a time where getting access to funding from traditional sources is more difficult, capitalising on your calls and lines revenue can be a low-risk strategy to achieve new growth”.