OFF-MARKET-Managed Service Provider in Northern California for Sale

OFF-MARKET ‘Q1 2023

Managed Service Provider in Northern California

San Francisco, San Francisco County, CA

Seller Financing Available if the price and deal structure is right

Asking Price: $3,200,000

Cash Flow: $482,000

Gross Revenue: $858,000

EBITDA: $482,000

FF&E: $50,000

Inventory: N/A

Established: 2001

Employees: 2

Business Description

This Managed Service Provider has been operating in the San Francisco Bay area for over 20 years. Clients are served by the founder and 2 technologist employees and a small team of independent contractors.

The Company is well positioned to build a strong monthly recurring revenue model, and has not actively sought to do so with their current clientele list, except for newer clients. The Company forgoes hardware sales margins and competes by providing quality technological expertise in a reactionary (project-based) or proactive manner (recurring-contract) with an approximately 60/40 split between commercial and residential clients respectively.

The Company has a very strong reputation in the marketplace and with their clients, receiving strong recommendations and leads from their current customers. The Company has already transitioned into a remote-first team and augments this with client site visits as needed.

Finally, there are strong tailwinds for this industry; the IT infrastructure investment necessary to continue doing business is always increasing, and the team at this company is dispositionally oriented around understanding and solving this technical challenge.

Numbers in the teaser are taken from the last completed fiscal year and include owner’s comp in the bottom line, YTD number are provided in the
CIM.

NDA required {SUBMIT BELOW} to receive comprehensive Confidential Information Memorandum (CIM) crafted by ProNova Partners.

Detailed Information

Facilities: N/A

Competition: strong fragmented competition exists in the form of other MSPs and internal IT departments.

Growth & Expansion: The current pricing lists for all clients has not been updated, so some clients are still paying prices quoted at sign-up,
which are now far below market rates.

Financing: Seller would prefer an all cash offer, but is open to structuring the sale with an owner carry component depending on valuation and other relevant features of the transaction.

Support & Training: The Seller is willing to provide a month’s worth of transition support and desires to see a successful transfer of the business.

Reason for Selling: The owner would like to spend a greater portion of his time on his other investments.