OFF-MARKET-Scalable Tennessee MSP With Elite Clients for Sale

OFF-MARKET ‘Q1 2023

Major Tennessee MSA IT Managed Services Provider with Elite Client Base Poised for Growth!

Limited Seller Financing Available

Asking Price: Best Possible Offer

Cash Flow: $828,627.77

Gross Revenue: $2,444,102.00

EBITDA: $828,627.77

FF&E: N/A

Inventory: N/A

Established: 2000

Employees: 6

Business Description

The Company is an IT Services firm in a large Tennessee MSA with a strong bent toward managed services. The Company offers communications services, network services, cloud services, disaster recovery, and data center management. Over 80% of the Company’s clients are flat-fee managed services clients and this is the focus for all new business; approximately 20% of the clients are legacy clients that are ”break-fix”/project based. This small organization remains nimble by leveraging outsourcing whenever possible for things that are outside of core competencies, ie, for things like structured cabling and printer repair.

After 20 years of building the business through dramatic changes in technology and steady organic growth, the Seller is ready to retire and hand the reins of the business to a new owner who can leverage his success and take this establishment to the next level. All terms of such transition are negotiable, as the Seller’s desire is to facilitate a transition that is most beneficial to the Buyer.
Over the last 5 years, the Company has consistently gained a minimum of 5 clients a year and expects to serve more than 120 clients in the next 3 months. Retention rate is over 90%, creating more than $2 million in revenue.

The Company’s 21 largest client accounted for $1,216, 270.13 of revenue in 2020. Of this amount, approximately $744,342.15 was recurring monthly revenue and $472,107.98 was non-recurring or project-based.

The average tenure of the Top 21 clients is 10.14 years and the average revenue breakdown for such clients in 2020 was approximately $35,444.86/recurring and $22,481.33/non-recurring and/or project.

A detailed breakdown of the Top 21 Clients will be provided during due diligence and a comprehensive Confidential Information Memorandum (CIM) crafted by ProNova Partners is available upon receipt of a signed NDA {SUBMIT BELOW}.

Detailed Information

Facilities:

There is a 1500 Square Foot space leased from the Seller that would be made available to the new Owner at market rates, though leasing this space is neither required for purchase nor necessary for business continuity.

Competition:

There is, of course, plenty of competition in the IT and managed services space. The Seller reports a diverse competitive landscape that has not presented any extraordinary challenge to the Company’s success. The Company stays ahead of the competition by offering technical superiority, unparalleled service and a 24/7 response.

Growth & Expansion:

The outlook is blindingly bright for both the Company and any Buyer who acquires this industry leading Large Tennessee MSA located MSP. The Seller knows that the sales potential for the Company is far from being fully realized.

The Company has many revenue streams from different verticals that all are profitable, but no marketing, advertising, or proactive hunting for business is currently underway. Seller believes that an investment in a good marketing/sales person and sales tools could double or better sales revenues in a short amount of time. The understanding of this explosive growth potential is factored into the
Seller’s asking price and requested deal structure.

Financing:

TBD if structure and terms are acceptable.

Support & Training:

The Seller offers a transition and training period post sale on an as-needed or to-be-determined basis. While his ultimate desire is to retire from the Business, the Seller is willing to stay on short-term in a capacity most helpful to all parties. This period may be negotiated pre-sale of the Business.

Reason for Selling:

After 20 years of building the business through dramatic changes in technology and steady organic growth, the Seller is ready to retire and hand the reins of the business to a new owner who can leverage his success and take this establishment to the next level.