Listing ID: 67613
Excellent opportunity to own an established management consulting, staffing, and contracting business based in the DC Metro area. The original business was founded in 1999 and operating under the current name since 2017 providing subject matter expert personnel in the areas of Program/Project Management, Earned Value Management Systems, Product Development, IT support, Operations, Supply Chain/Procurement, Quality Assurance, and Project Management Systems. Over the years, the business has primarily served the Aerospace, Defense, IT/Technology Management, and Transportation sectors.
The core mission of the business is to assist clients in achieving optimal program execution results by using tailored PP&C and EVMS practices that drive achievable life-cycles that promote budgets and organizational profitability. This is done by establishing an integrated set of business processes, technical tools, program controls and communication mechanisms that create and support high-efficiency business units and integrated program/project/product teams (IPT). One of the key contracts currently in place is a federal IT & Marketing Staff Master Services Agreement (MSA) with a very well-known federal government entity, which was awarded in 2020. This agreement runs through 2025 (an initial 3-year term with 2-year option) and allows the business to provide resource personnel to support IT and Marketing department needs.
The business currently operates from a home office space in Maryland, but can easily be relocated by the future owner. The government contracting and consulting industry has seen strong and sustained growth over the past decade and this trend is forecasted to continue well into the future. The owner is willing to stay on and assist with the transition as well so don’t miss out on this opportunity and contact us today to learn more!
- Asking Price: $120,000
- Cash Flow: N/A
- Gross Revenue: $869,594
- EBITDA: N/A
- FF&E: N/A
- Inventory: N/A
- Inventory Included: N/A
- Established: 2017
- Property Owned or Leased:N/A
- Property Included:N/A
- Building Square Footage:N/A
- Lot Size:N/A
- Total Number of Employees:N/A
- Furniture, Fixtures and Equipment:N/A
The business is currently based out of a home office and can easily be relocated. (Home Based)
The seller is willing to provide reasonable transitional training and support for free for up to 30 days and will be available for an additional year of consulting and support @ $155/hour for a maximum of 1,040 annual hours.
Owner is retiring.
There is standard competition for the industry, but this business has been established for nearly 5 years and is in the early stages of a long term federal contract with a well-known organization.
There is room to grow and expand the business. A new owner might consider seeking out more commercial, government, or military contracts. It would also probably make sense to implement a modest advertising/marketing campaign to create awareness about the business and its services.
This Business Is Home Based
The venture was started in 2017, making the business 5 years old.
Why is the Current Owner Selling The Business?
There are all kinds of reasons why people decide to sell companies. However, the real reason vs the one they tell you might be 2 absolutely different things. For instance, they may state "I have too many other responsibilities" or "I am retiring". For lots of sellers, these reasons are valid. But, for some, these may simply be excuses to attempt to hide the reality of changing demographics, increased competitors, current reduction in profits, or a variety of various other factors. This is why it is very important that you not count completely on a vendor's word, yet instead, utilize the vendor's response in conjunction with your general due diligence. This will repaint a more practical picture of the business's existing circumstance.
Existing Debts and Future Obligations
If the existing entity is in debt, which many businesses are, then you will certainly have reason to consider this when valuating/preparing your offer. Lots of companies take out loans with the purpose of covering points such as supplies, payroll, accounts payable, etc. Remember that sometimes this can imply that profit margins are too tight. Numerous businesses come under a revolving door of taking loans as a way to pay back other loans. Along with debts, there may additionally be future commitments to take into consideration. There might be an outstanding lease on equipment or the building where the business resides. The business may have existing contracts with suppliers that should be satisfied or may result in charges if canceled early.
Understanding the Customer Base, Competition and Area Demographics
Just how do companies in the location draw in new consumers? Most times, businesses have repeat clients, which form the core of their day-to-day revenues. Certain factors such as brand-new competitors sprouting up around the location, road building and construction, and also staff turnover can affect repeat customers and negatively influence future profits. One essential thing to think about is the location of the business. Is it in a very trafficked shopping mall, or is it hidden from the main road? Undoubtedly, the more individuals that see the business regularly, the better the opportunity to build a returning client base. A final thought is the general area demographics. Is the business placed in a densely populated city, or is it located on the outside border of town? Just how might the regional average home income effect future revenue potential?