List Price: $708,000
Owner Profit/Cash Flow
Profit Margin: 16%
Multiple: 3.4*Multiples range from 1-5, with the average being 3
Valuation: Cash Flow x Multiple = Price
$208,469 x 3.4 = $708,794
Network Management with Support and Cloud Service makes this business invaluable to a range of clients. For more than 20 years the business has been offering services including cloud migration, design, implementation and support for new technology systems and continuing consultation.
Client size ranges from smaller systems (1 server with 5-25 workstations) to data centers with virtual services and 50+ workstations; and include law firms, printing companies, municipalities and service-based businesses within a 100 mile radius of Sioux City. The business sees an average of 10-15 new clients per year; with an increase of 25 new clients since adding sales staff in November 2015.
The current owner is willing to not only offer transition time, but help expand the business by offering consulting services to a new owner. There are growth opportunities in marketing and sales (which have increased since hiring a salesperson in November2015), telephony opportunities and moving clients to service contracts rather than T&M basis.
The current owner owns the business property, and is willing to lease the property for $1,000 per month or sell the property in a separate transaction.
With a down payment of $70,800, a new owner could realize a Net Operating Income of $90,168, which is a 127% Return on Investment in the first year!
Assets Included in Purchase: $113,575
3 office servers, 3data center servers, 2 switches, 2 firewalls, 9 Avaya phones, 3 printers, furniture
Intangible Assets: Strong relationships with vendors and customers, website
A/R and Work in Progress: $108,900
1-30 Days: $83,000; 30-60-Days: $12,500, 60-90Days: $11,400
90+ Days: $2,000
*amounts may vary
Service Area: 100mile radius of Sioux City
Services Offered: Cloud migration, design, implementation and support of new technology systems, consultation services
Client Mix: Law firms, printing companies, municipalities, service based businesses; average10-15 new clients per year
Demographics: Serves clients ranging from one server locations to large data center clients with multiple servers
Building /Lease: willing to lease to new owner for $1,000 per month or sell in a separate transaction
Reason for Selling: Retirement Strategy
Employees: 2administration, 2 project managers (partially billable), and 5 Consultants
Seller Training Period: 90 days with possible transition to Consultant for 2 years, if desired
Growth Opportunities: Increased marketing and sales, telephony opportunities including consulting, moving clients to contracts instead of a T&M basis
Current Owner's Responsibilities: Administrative and accounting support
Purchase Price: $708,000
10% Buyer Down Payment: $70,800
25% Seller Financing: $177,000
65% Bank Loan: $460,200
For a detailed financial package, please contact Cortney Sells or one of The Firm Business Brokerage's professionals at 402.998.5288 or email Confidential@TheFirmB2B.com.