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Article from: Phone + Magazine

Telcombrokers Begins Buying Spree

Khali Henderson
1/30/2007

In what is described as the first of many acquisitions, master agency Telcombrokers in late December purchased the assets of Tru Choice Communications, a rival master agency based in Corona, Calif.

“We are very pleased to complete the acquisition of the TruChoice agents and customers. This acquisition marks a step forward in a strategic initiative to rapidly expand both our customer and agent bases through 2007 and beyond,” says the company’s founder and CEO Dominic Antonini.

Telcombrokers, a master agency based in Santa Ana, Calif., purchased the customer and agent contracts from Tru Choice, which was owned by the founders of Salestream Software, makers of MasterStream channel management software.

Tru Choice adds more than 35 accounts and about 30 agents (10 active) to Telcombrokers stable, which now includes about 1,500 customers and 200 agents (75 active). “I look at the deal in terms of commission dollars,” says Antonini. “Telcombrokers is bringing in about $240,000 a month in commissions and this deal will increase that to about $260,000 a month.”

Telcombroker's Dominic Antonini

The acquisition also allows Salestream Software founders Steve Roberts and Jeff Fraser the ability to focus on their growing software business. “The success of Salestream Software really necessitated this transaction long ago but searching for a buyer was just never made a priority,” says Roberts, who is president of Salestream Software. “It is fair to say we were primed and ready when Mr. Antonini approached us with an offer.”

Fraser, vice president of Salestream Software, said the sale represents a strategic win for Telcombrokers in more ways than one. “Dominic was smart to buy out Tru Choice because he gets all of the benefits of having an overnight expansion in agents, customers and revenue, which is a given, but he also knows that buying Tru Choice allows [Salestream Software] to focus 100 percent on customerdevelopment needs,” he says. “I’m sure he’s preparing his list of enhancements already!”

The proceeds from the sale of Tru Choice will be used, in part, to hire additional programmers to support development of the MasterStream software, Antonini said.

Oddly, through the Telcombrokers umbrella, Tru Choice agents now will have access to the MasterStream software, which Telcombrokers has implemented but Tru Choice has not, so that its founders could avoid a conflict of interest.

Antonini said Telcombrokers expects to close another acquisition in the next 30-to-45 days. If it closes, the deal would add another 35 agents and $60,000 in commissions, he says.

“By growing both organically and through acquisitions, I hope to complete my seven-year plan in half the time,” he says. Antonini says he is interested in acquiring bases of agencies with owners that are looking to retire or move into other businesses that will not compete with Telcombrokers.

Telcombrokers offers franchise options for agents that prefer not to be subagents. Antonini says franchisees can use Telcombrokers’ name and logo and its office systems, including e-mail addresses and an extension on the company’s phone system. In 2006, the company implemented a custom version of the MasterStream sales automation software that allows partitioned views of customer bases and subagents, so that franchisees can leverage the embedded proposal- generation, contact-management and order-tracking tools as if they licensed the software themselves.

Unlike typical franchise programs, there are no upfront licensing fees. In fact, agents get a higher commission percentage, but they must agree to exclusivity.

Antonini likes the franchise model because it ensures customers get the same experience no matter which subagent is representing Telcombrokers. In addition, it helps the agents with key issues, such as overhead and lack of brand identity.