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Listing #S98848
 
Managed IT and Printer Services Co.
 
Recurring revenues - Ideal Aquisition Candidate!
 
This is a full-service technology solutions company offering sales, service and support for technology needs such as networking, managed services, print and document management, security, and telephony. Located in the northern Connecticut/ western Massachusetts area, it is an authorized dealer for HP, Xerox, Lexmark and Okidata printers. With 342 active customers in 2007, the Company specializes in small to medium size companies as well as institutions of higher education, public and private schools, healthcare, and legal, accounting, insurance and real estate firms.

In 2007 gross profits were almost $1.2 million with information technology (?IT?) services generating over $1.3 million in revenue and $721, 202 in gross profits. Most of the IT revenue was generated from prepaid contracts and managed service contracts which include 24/7 network monitoring. Revenue from its printer management division totaled $713,000 and after deducting the cost of printer parts, toner, and direct labor and benefits showed a gross profit of $238,577. Having added 359 printers under management in the first two months of 2008, this division is growing rapidly and management expects this channel of recurring revenue to increase by 12% in 2008. Hardware and software sales totaled $1,365,711 in 2007 but have been decreasing as the company focuses on increasing gross margins and the hardware market has become commoditized.

Over twenty years of continued growth and profitability through several business and industry cycles, its diverse customer base as well as its recurring revenue make this company a very attractive acquisition candidate.

 
Primary Business Category: Services - Business (SIC 73, NAICS 561)
Secondary Business Category: Information Services & Data (SIC 73, NAICS 514)
Location: Massachusetts
Metropolitan Area: Not Disclosed
Listed by: An Intermediary
 
Financial Information
Gross Revenue: $3,500,000 Asking Price: Not Disclosed
Current Year Projected Revenue: $3,500,000 FF & E (included): $181,385
EBITDA: $131,000 Inventory (included): $200,000
Current Year Projected EBITDA: $131,000 Real Estate (included): Not Disclosed
Profitable: Yes Transaction Sought: Asset
Business Type: S Corporation Payment Requested: Cash
Financials: Compiled Seller Financing Available: Negotiable
 
Company Information
Year Established: 1988 Home Based: No
Number of Employees: 11 to 25 Franchise: No
Management: Available to Stay through Transition Distressed: No
Non Compete Agreement: Available Relocatable: No
Reason for Sale: Owner is burnt out.
Fiscal Year End: December
Ownership: Private
 
Key Employees
Sales Manager
Engineers and Technicians
 
Facilities
The current facilities are leased in an industrial zone. The office, repair shop, and warehouse occupy 13,780 square feet in a single story masonry building. The lease has a base rent of $5,684 per month.
 
Market Share
Company is one of the market leaders in its area.
 
Competition
There is little competition in the printer management market. The IT market is more competitive but both markets are expanding.
 
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Seller Information
Enfield, Connecticut
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