Business Overview

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Established in 2002, this successful family business has been operating in the Pierce County area by maintaining a small skilled workforce and low operating costs.
The business philosophy is unique priding itself on customer satisfaction and strives to develop long term relationships with their customers. They have an excellent reputation for honesty, excellent service and fair prices.
The current business focus is transitioning from break/fix computer services to contract remote and managed services. The business has seen a 28% growth in recurring managed service contracts in the past year and the demand for Managed IT Services is believed to remain high in upcoming years.
The owners are ready to retire and because of the current market trends in managed services, this business is a great opportunity for an individual with IT skills to take over the current success and grow the business.
The market is expected to expand at a compound annual growth rate (CAGR) of 12.7% from 2021 to 2028.

Financial

  • Asking Price: $125,000
  • Cash Flow: $60,260
  • Gross Revenue: $296,688
  • EBITDA: N/A
  • FF&E: $10,000
  • Inventory: $10,000
  • Inventory Included: N/A
  • Established: 2002

Detailed Information

  • Property Owned or Leased:N/A
  • Property Included:N/A
  • Building Square Footage:1,600
  • Lot Size:N/A
  • Total Number of Employees:1
  • Furniture, Fixtures and Equipment:N/A
Is Support & Training Included:

4 Weeks

Purpose For Selling:

Retiring

Pros and Cons:

The tech market in the United States represents 32% of the total, or approximately $1.7 trillion for 2020. The tech sector continues to account for a significant portion of economic activity. CompTIA’s Cyberstates report reveals that the economic impact of the U.S. tech sector, measured as apercentage of gross domestic product, exceeds that of most other industries, including notable sectors such as retail, construction, and transportation. The demand for Managed IT Services is believed to remain high in upcoming years. Managed I.T. services are the practice of outsourcing on a proactive basis certain processes and functions intended to improve operations and cut expenses. It simplifies IT operations, increases user satisfaction, and improves service quality, while reducing operating costs. Jul 15, 2020 (AmericanNewsHour) --Global Managed Services Market is valued at approximately USD 207 billion in 2019 and is anticipated to grow with a healthy growth rate of more than 8.1 % over the forecast period 2019-2026.

Additional Info

The venture was started in 2002, making the business 20 years old.
The deal doesn't include inventory valued at $10,000*, which ins't included in the suggested price.

The business has 1 employees and is located in a building with approx. square footage of 1,600 sq ft.
The real estate is leased by the company for $1,687 per Month

Why is the Current Owner Selling The Business?

There are all types of reasons why individuals choose to sell companies. Nonetheless, the real factor vs the one they tell you might be 2 entirely different things. For instance, they may state "I have a lot of various commitments" or "I am retiring". For numerous sellers, these reasons are valid. But also, for some, these may simply be excuses to try to conceal the reality of changing demographics, increased competitors, current reduction in earnings, or an array of various other factors. This is why it is very crucial that you not rely absolutely on a vendor's word, yet rather, make use of the seller's answer along with your total due diligence. This will paint a more realistic picture of the business's current circumstance.

Existing Debts and Future Obligations

If the existing business is in debt, which numerous companies are, then you will certainly have reason to consider this when valuating/preparing your offer. Lots of companies finance loans so as to cover points like inventory, payroll, accounts payable, and so on. Keep in mind that in some cases this can mean that profit margins are too tight. Lots of businesses fall into a revolving door of taking loans as a way to pay back various other loans. Along with debts, there may likewise be future obligations to think about. There might be an outstanding lease on equipment or the building where the business resides. The business may have existing contracts with vendors that need to be met or might cause fines if canceled early.

Understanding the Customer Base, Competition and Area Demographics

Just how do companies in the location draw in brand-new customers? Many times, operating businesses have repeat consumers, which develop the core of their day-to-day earnings. Particular elements such as brand-new competition growing up around the location, roadway building, as well as employee turnover can impact repeat clients and also negatively affect future profits. One essential point to think about is the placement of the business. Is it in an extremely trafficked shopping center, or is it hidden from the highway? Obviously, the more individuals that see the business often, the higher the chance to build a returning client base. A last thought is the basic location demographics. Is the business placed in a densely inhabited city, or is it situated on the outside border of town? How might the neighborhood mean household income impact future revenue potential?