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61% Profit Margin at Salt Lake City Area IT Services Company

Works with local and national companies of all sizes!



  • Price

  • Revenue

  • Cash Flow

  • Location
    Salt Lake County, Utah

  • Service Area
    Local (85%), regional (5%), and national (10%)

  • Profit Margin


This Salt Lake City area IT services company boasts a massive 61% profit margin! Along with providing network infrastructure services, this company also provides the necessary equipment and software their clients need: servers, storage, workstations, security software, virtualization software, etc. Services include firewall implementation & management, endpoint security, ransomware protection, data protection, disaster recovery, business continuity, instant virtualization, and proactive endpoint monitoring and management. The company utilizes specialized software, such as Datto RMM, Datto, BCDR, Autotask PSA, Auvik, Lionguard Scale Computing, DataCore, Windows, Citrix Apps, Citrix Hypervisor, Citrix ADC, and Sophos Central Endpoint. The company boasts high profit margins and has seen year-over-year growth in sales since 2018. In 2020, sales of goods and SaaS accounted for 41% of business while human labor services accounted for 59%.


The owner handles the day-to-day operations, while the two part-time 1099 employees assist with technology health checks, running weekly & monthly reports for clients, adding content to the website, and helping with quotes. The business is run from a home office or on site at client locations; no commercial office space is needed.


Priced at $920,000, a 10% down payment of $92,000 returns $145,681 in the first year after debt payments – a 158% return on investment! With a solid customer base intact and an abundance of documentation on each client, a transition would be seamless for an already existing IT management company that is looking to grow the own client list and revenue.


Business Highlights

Year Established: 2015

Location: Salt Lake County, Utah

Service Area: Local (85%), regional (5%), and national (10%)

Services: Provide network infrastructure services and equipment sales (servers, storage, workstations, security software, virtualization software)

Clients: Businesses & corporations seeking IT assistance

Lease: Business is run from owner’s home office; no commercial space needed

Reason for Selling: Pursuing other business interests

Personnel: 1 FT (Owner) + 2 part-time 1099

Seller Training Period: 6-12 months

Intangible Assets: Long-standing relationships with client & vendors, solid reputation for customer service

Growth Opportunities: Increase client base; excellent opportunity for existing IT Management company

Current Owners’ Responsibilities: Day-to-day operations of the business: various projects, meetings with clients, etc.

Financial Highlights

  • List Price: $920,000

  • 2021 Cash Flow: $330,193
  • 2020 Cash Flow: $215,088
  • 2019 Cash Flow: $126,484

*amounts may vary

Cash Flow Analysis

Description of Financial StatementP&L StatementTax Return
Tax Return
Tax Return
GROSS SALES$540,605$482,973$296,913$186,222
Net Income Shown on Financial Statement$282,930$171,418$104,287$114,154
Life Insurance$6,757$0$0$0
Health Insurance$8,850$0$0$0
Auto Insurance$1,098$0$0$0
Auto Expense$3,705$6,386$12,586$11,088
Medical Expense$8,476$0$0$0
TOTAL ADDBACKS$47,263$43,670$22,197$20,008
Seller's Cash Flow = Total Addbacks + Net Income$330,193$215,088$126,484$134,162
Profit Margin61.08 %44.53 %42.60 %72.04 %
Profit Margin: 61%


Funding Example

Purchase Price:



Bank Loan Needed: $


Funding Details


Offer Price: $

% Buyer Cash Down at Closing: $

% Seller Carry Back via Promissory Note: $

year term at a rate of %

% of Purchase Price secured by Buyer and Seller

Total Bank Loan Need: $

% of Purchase Price

Desired Loan Type:

Desired Bank Terms: year term at a rate of %

Total Business Assets, Inventory, and A/R: $

Total Undercollateralized Loan: $

Loan Payments

Monthly Payment to Bank: $
Yearly Payment to Bank: $
Monthly Payment to Seller: $
Yearly Payment to Seller: $
Total Monthly Debt Service: $
Total Yearly Debt Service: $


Fixed Charge Coverage Ratio

The bank will require a minimum ratio of 1.5 to be lendable.

Cash Flow:
2020-2021 Average Cash Flow
Annual Debt Service: $

Buyer's Net Operating Income (NOI)

The amount of money the Buyer will retain as profit.

Cash Flow:
2020-2021 Average Cash Flow
Annual Debt Service: -$

Buyer's Return on Investment (ROI)

The rate of return on the Buyer's down payment.

Down Payment: $
ROI: %


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210 N 78th St. 2nd Floor
Omaha, NE 68114

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f 402.939.0857

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The Firm makes no warranties or representation in consideration to the information provided above. All communication regarding this business must occur directly with The Firm Advisors, LLC. The Firm is not a real estate brokerage and does not sell real estate. The Firm solely advises on exit strategy.