The opportunity may be particularly compelling given that the recession and slow recovery had diminished the market for some assets and stretched PE firms' investment horizons.

Two examples are Hargray Communications Group Inc. and U.S. TelePacific Corp. The PE-backed companies, which operate in different parts of the communications sector, are preparing to explore options including sales, sources said.

Founded in the 1940s as a landline telephone operator, Hilton Head, S.C.-based Hargray is in the unusual position of being both an incumbent phone and an incumbent cable operator in much of its footprint -- something unusual for the industry where companies tend to be one or the other.

Quadrangle Group LLC has owned the company since 2007. The New York private equity firm had already tested the market for Hargray in 2010.

The company's territory in South Carolina and Georgia include coastal resorts and communities popular with retirees. One source puts the cash flow from the company's systems at $70 million.

Regarding valuation, a different source said it would be interesting to see whether Hargray were priced in line with cable acquisitions, which have been 8 times Ebitda or higher, or telecom valuations, which have been in the mid-single digits.

Moody's Investors Service noted in an August 2012 credit opinion that Hargray had made acquisitions and increased capital expenditure to offset declines in the local phone business.

Hargray purchased Beaufort, S.C., cable systems from Charter Communications Inc. in 2012.

Earlier this year, the company said it would buy Savannah, Ga.-based information technology services, data storage and communications services provider iTech. One source noted that it would be unusual for a company to make a purchase immediately before opening a sales process, although the person had heard that Hargray would explore options.

The Quadrangle portfolio company has also sold its directories and wireless businesses.

While Hargray is primarily an incumbent telecom and cable operator, Los Angeles-based TelePacific is a competitive local exchange carrier, or CLEC, that challenges more established telecoms.

Backed by Investcorp SA and Clarity Partners LP, TelePacific serves business customers in California, Nevada and Texas. Investcorp has been an investor since 2000, according to the firm's website.

Sources said that Credit Suisse Group and Brown Brothers Harriman & Co. have been retained to explore a sale.

The PE firms' valuation expectations were in the high single-digits, said one person who felt that a multiple closer to 5 would be a better fit for buyers. The firms might hope for a multiple approaching the 5.5 times forward Ebitda that Windstream Corp. paid in its $2.3 billion purchase of Paetec Holding Corp., sources said.

TelePacific has purchased companies and assets to expand its services or its offerings in recent years.

Moody's noted that the telecom spent $95 million on a series of debt financed acquisitions that included Texas business telecom TelWest; Orange County data center operator OCiX Inc.; wireless assets in California and Nevada owned by MegaPath Inc.; and Sacramento, Calif., carrier 01 Communications.

Integra Telecom Inc., of Portland, Ore., is often mentioned as a potential match for TelePacific. Both carriers serve business clients on the West Coast.

Recent changes in Integra's ownership could improve the company's ability to pursue deals.

New York PE firm Searchlight Capital Partners LP purchased Goldman, Sachs & Co.'s stake in December. Sources said that Goldman, which had gained its position in Integra through a debt swap, was more interested in exiting its investment than expanding the business.

Integra's other backers include Tennenbaum Capital, Farallon Capital and Warburg Pincus.

Investcorp declined to comment. A spokeswoman for TelePacific could not immediately be reached Tuesday.

Representatives from Hargray and Quadrangle were also not immediately available for comment.