Cyber-Security, Cloud Computing, & IT Services--179% ROI
With over $11k in recurring monthly revenue!
Located in the Salt Lake Metro area, this IT management company had a 42% profit margin in 2020 and has over $11k in recurring monthly revenue! 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 $660,000, a 10% down payment of $66,000 returns $118,764 in the first year after debt payments – a 179% 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.
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.
- List Price: $660,000
- 2020 Cash Flow: $203,872
- 2019 Cash Flow: $104,695
*amounts may vary
Cash Flow Analysis
|Description of Financial Statement||Tax Return|
|Net Income Shown on Financial Statement||$171,418||$104,287||$114,154|
|Seller's Cash Flow = Total Addbacks + Net Income||$203,872||$104,695||$114,473|
|Profit Margin||42.21 %||35.25 %||61.47 %|
Offer Price: $
% Buyer Cash Down at Closing: $
% Seller Carry Back via Promissory Note: $
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Fixed Charge Coverage Ratio
The bank will require a minimum ratio of 1.5 to be lendable.
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Buyer's Return on Investment (ROI)
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