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Dec 19, 2019 — Today’s businesses require effective solutions to support the information technology needs of the organization. There is no better IT provider than this 27-year old full-service Managed Services Provider (MSP) providing extensive, comprehensive IT services and hardware to address client needs, including:
• Managed IT Services
• Cloud Computing
• Disaster and Data Backup & Recovery
• Network Security & Awareness Services
• Risk Assessment & Compliance
• IT Consulting and Project Management & Integrations
• Data and Voice Cabling
• Manufacturer Warranty Services – the business has an extensive list of authorizations including (among others) HP, Dell, Fujitsu, Lenovo, Epson, Watchguard, Microsoft, Cisco, and Zebra.
Since the beginning of 2018, the company has provided service to 300 clients spanning a very diverse base of industries. The company’s clients are generally located in SE Michigan as is the business. The company, with some $4,000,000 in current revenues, boasts many meaningful profit centers including network support agreements, project labor blocks, software support and service subscriptions, manufacturer’s warranty care packs.100% of revenues are generated from highly desirable “b to b” sales activity. The company’s strong growth has been enhanced by repeat customers who serve as the perfect referral base for obtaining new clients. The business receives daily approximately 25 calls from potential new clients. The stellar reputation of the company makes it an easy decision for potential clients to select this company to provide critical IT services.
This high cash flowing business with eight (8) well paid, highly skilled, technical employees operates out of a modern and conveniently located 4,500 square foot facility in a desirable community in suburban Detroit. The attractive, newer facility is owned by the seller who will lease the office for $55,200 annually, which is less than 2% of annual revenues.
Sales have risen steadily from $2,500,000 to 4,245,000 between 2016 and 2018. For the first ten months of 2019 sales are already at $3,150,000. For the 34-month period ending October 2019, the company has recorded average annual revenues of $3,450,000 with a very impressive weighted annual SDE (seller’s discretionary earnings – historical, normalized cash flow available to pay an owner-operator and service debt) of $735,000. The business is being offered for $3,200,000, an attractive 3.35x multiple of fiscal 2019 SDE projected at a very impressive $952,000.
The seller is contemplating an asset sale in which he retains cash and A/R, while retiring all liabilities. A meaningful seller note will be available to a qualified buyer.