MergerPlace

Enterprise-Level IT Services Provider

Michigan


  • Asking Price: Not Disclosed
  • Gross Income: $7,300,000
  • Cash Flow: $1,394,054
  • Real Estate: Not Disclosed
  • Inventory: $52,699
  • FF&E: $300,000
  • Listing ID: #225172
  • Established: 2000
  • Employees: 28

Business Description

*Special Note: In a victory for small business buyers, the recent $900BB stimulus bill directs the SBA to pay the first 6 months of new SBA 7(a) loans approved between February 1 and September 30, 2021 (up to $9,000/month). Our advice: Don't wait. Find a quality business and get moving quickly. Banks will be busy this year and buyers that wait until July/August will likely lose out.

It is genuinely a rare opportunity for an IT Services Provider of this size and quality to become available on the market! You will need to act quickly to get in on the action.

This Company is a Michigan-based enterprise-level information technology services provider offering the following services: business continuity planning, disaster recovery solutions, cloud computing services, collaboration software procurement, hardware procurement, project management, managed support services, network infrastructure planning, security and compliance services, risk management, and more. The Company imparts IT solutions to various industries, including financial, manufacturing, governmental, healthcare, construction, real estate, and retail.

Founded in the early 2000s by two partners, the Company prides itself on being not just an IT consultant but an IT partner. It delivers technology solutions that simplify IT environments, improve productivity, and reduce costs, allowing customers to focus on running their business, not IT. The Company strives to ensure that its service offerings keep up with ever-evolving technology. Over its two decades in operation, it has expanded its facility size multiple times to accommodate growth. The facility is owned by a related real estate holding entity owned by its two owners.

Owner 1 is the Company’s President. He typically works 40 hours per week but believes his time could be cut down to 16 hours per week (4 hours per day, 4 days per week) without any effect on normal operations. His most valuable tasks include leading the service team, handling compliance and security measures for the Company, and providing leadership in the form of consultations and speaking engagements.

Owner 2 is the Company’s Vice President. He also works 40 hours per week, primarily out of habit. He believes he could work 4 to 5 hours per day to adequately handle all his responsibilities within the Company. His most valuable tasks include assisting the sales teams and managing the Company’s financials.

The Company has displayed high levels of resiliency during the COVID-19 pandemic, with increased sales and decreased expenses. Its services have been in high demand, with more businesses relying heavily on technology to operate remotely through the pandemic.

The Company is staffed with a highly skilled, technical, and dedicated team that provides significant depth to its service capabilities. The knowledge base stemming from the team’s dedicated professionals supplies the Company with a considerable competitive edge.

Potential Buyers must have a minimum of $1,000,000 in available liquid capital to receive information about this opportunity.

Thank you for reading this overview. The extent of the information that we are publicly permitted to reveal about this opportunity is contained in this overview. Please submit your contact information in the provided form. We have automated the processing of NDAs and sending of information for speed and efficiency. You will be sent a link to our online NDA. IF YOU DO NOT RECEIVE THE NDA LINK, PLEASE CHECK YOUR JUNK MAIL. If the email cannot be found, please email info@caldergr.com and request a PDF version.

Once we receive your NDA and answers to some basic questions, the Confidential Information Memorandum (CIM) will be sent to you from the project manager.

IF YOU DO NOT RECEIVE A FOLLOW UP EMAIL AFTER YOU SUBMIT YOUR NDA, PLEASE CHECK YOUR JUNK MAIL FIRST. If you do not see the email there, please email info@caldergr.com for support. Thank you in advance!


Business Details

Primary Business Category: Internet Related - Business Services B2B
Location: Michigan

Company Information

Year Established: 2000
Home Based: No
Franchise: No
Relocatable: No
Number of Employees: 28

Financial Information

Gross Revenue: $7,300,000
Cash Flow: $1,394,054
EBITDA: $1,394,054
FF&E: $300,000
Inventory: $52,699
Seller Financing Available: Yes

Property Information

Facilities:

The Company operates out of an 8,500 square foot facility built in 2000, which is in excellent condition. The facility includes 3 kitchen areas. Office areas are 9 feet in height.

Growth & expansion opportunities:

Growth Opportunities Include: (1) Increasing IT Demand: The Company’s services could be in increasingly high demand for many years to come. As more employers are considering the switch to permanent work-from-home jobs (or at least expanding the abilities for employees to work from home), the need for IT professionals is expected to escalate with the growing trend. Many business operators are turning their attention to alternative storage solutions such as cloud services and outsourced IT storage management. The Company’s team of skilled professionals will be a boon towards meeting the potential presented by these notable trends. (2) Develop & Implement Sales Program: The Company’s salespeople are often caught up in operational activity when they could be freed up to focus on sales. Developing a formal training program that encourages shortening the sales cycle to increase time-to-close on opportunities could be a key top-line driver for the Company moving forward. (3) Strengthen Help Desk Staff: Help desk staff presently lack the experience and years of service that the other departments within the Company hold. Problem resolution is delayed at times due to a shortfall of technical prowess within this department. Adding one or two experienced help desk employees who are well-versed in the applied mechanics of IT could be an immediately actionable path to Company growth. (4) Improved Managed Services Offering / Move to the Cloud: As of December 2020, the Company was in the process of finalizing an improved Managed Services Provider offering. The package is simpler to sell, understand, and quote for as compared to previous offerings. The Company expects this new offering to be ready for roll-out in early 2021 for both small and medium businesses alike. Management estimates that the offering will benefit the Company in the form of recurring revenues of approximately $250,000 per year on top of the already significant $2,900,000 of recurring revenues per year. The Company is also working towards moving its data center to the cloud. Once the data center hosted services are uniformly based in the cloud, the Company will follow with its internal systems. The internal systems cloud-integration phase is on track for completion by year-end 2021. Working towards seamless cloud integration of the Company's internal processes and procedures will prove to be a principal efficiency booster in both the short and long-term. (5) Strategic Add-On Acquisitions: The Company operates in a highly competitive industry. The most viable path to inorganic expansion would be the acquisition of a firm of similar nature and service capabilities located outside of Michigan. The benefits of such an acquisition would include revenue and volume growth, margin and EBITDA improvements, and added talent.

Competition:

Investment Highlights Include: (1) Highly Skilled, Technical, and Dedicated Employees: The knowledge base stemming from the dedicated professionals on staff provides the Company with a strong competitive edge. The Company continually invests in its employees by providing opportunities for individual growth. Over 50% of its staff has at least 5+ years of service with the Company, with many holding 10+ years of service. (2) COVID-19 Proof Business Model: The Company has proven itself to not only be COVID-resistant but COVID-proof. The Company did not let go of a single staff member due to the pandemic; in fact, they strategically increased its personnel to accommodate a rise in sales and service demand. (3) Recurring Revenue: The Company’s relationships with customers are typically long-lasting, with the Company filling in the gaps of the customers’ IT needs. Cultivating close-knit connections to customers in a consultatory manner has rewarded the Company with approximately $2.9 million in recurring revenue per year. (4) Exceptional Perspective/Mission: The Company strives to provide the finest, most comprehensive and cost-effective IT solutions to customers. The Company works to grow in both size and strength to compete head-on with the local and regional competition. They strive to deliver excellent customer service in all aspects of the business, and they want their customers to rave about the Company’s services. (5) Established Reputation of Integrity: The Company was founded on value, honest assessments, fair opinions, and complete customer service. Everything the Company works for points towards the concept of value. They perform a thorough analysis of all their customers based on their need level to determine exactly what they do and do not need. In short, the Company provides custom-tailored IT solutions and desires 100% customer satisfaction.

Reason for selling:

Ownership would like to gradually transition into retirement.

Support & Training:

Ownership is willing to provide reasonable and customary transition assistance. Owner 1 is willing to assist the new owner(s) in the transition period at a full-time capacity for 3 months, followed by a part-time capacity for another 3 months. Owner 2 is willing to consider staying on with the Company for up to 6 months post-sale.

Contact Business Seller

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Business Listed By:

Max Friar

Calder Capital, LLC