Business Overview

International software consulting company with several separate income streams and recurring revenue opportunities.

They provide consulting services and training and education programs within their chosen field of expertise. The company was founded in South Central Texas in the 1990’s and has built a great name and reputation in the US and internationally. Many Fortune 100 and Global 1,000 companies across all industry types are among its long-term customer base.

The company has five employees and a number of independent contractors, and it has a network of partners and material licensees around the world. The revenue in 2018 was $804k and the Seller’s Discretionary Earnings were $253k.

The seller is preparing to retire, but will stay on for a period of time to ensure a smooth transition and is willing to stay on for 2-3 years.

Financial

  • Asking Price: $750,000
  • Cash Flow: $480,000
  • Gross Revenue: $973,000
  • EBITDA: N/A
  • FF&E: $10,000
  • Inventory: N/A
  • Inventory Included: N/A
  • Established: 1995

Detailed Information

  • Property Owned or Leased:N/A
  • Property Included:N/A
  • Building Square Footage:N/A
  • Lot Size:N/A
  • Total Number of Employees:5
  • Furniture, Fixtures and Equipment:N/A
About The Facility:

The business is home based in South Central Texas and can easily be relocated. (Home Based)

Is Support & Training Included:

The shareholders are willing to stay engaged in their current roles as needed for up to 2-3 years so that the buyer can be comfortable running the business.

Purpose For Selling:

Seller is winding down to prepare for retirement.

Pros and Cons:

Currently, there are no competitors when it comes to the consulting side of their business. There are however a few competitors in the training side of their business.

Opportunities and Growth:

Several ways to grow the business have been identified and will be discussed at a later stage.

Home Based:

This Business Is Home Based

Additional Info

The venture was founded in 1995, making the business 27 years old.

Why is the Current Owner Selling The Business?

There are all kinds of reasons people decide to sell businesses. Nevertheless, the real factor and the one they say to you may be 2 completely different things. As an example, they may state "I have a lot of other commitments" or "I am retiring". For many sellers, these reasons are valid. But, for some, these may simply be justifications to try to hide the reality of altering demographics, increased competition, current reduction in earnings, or a variety of other factors. This is why it is extremely essential that you not depend totally on a vendor's word, yet instead, make use of the vendor's response along with your total due diligence. This will paint a much more reasonable image of the business's existing scenario.

Existing Debts and Future Obligations

If the existing business is in debt, which numerous businesses are, then you will certainly have reason to consider this when valuating/preparing your offer. Many companies borrow money in order to cover things such as inventory, payroll, accounts payable, etc. Remember that sometimes this can mean that earnings margins are too thin. Lots of businesses fall into a revolving door of taking on debt as a way to pay back other loans. Along with debts, there may likewise be future commitments to consider. There may be an outstanding lease on equipment or the structure where the business resides. The business may have existing agreements with vendors that should be satisfied or might cause charges if terminated early.

Understanding the Customer Base, Competition and Area Demographics

Exactly how do operating businesses in the location draw in brand-new customers? Often times, companies have repeat consumers, which develop the core of their day-to-day revenues. Specific elements such as brand-new competition sprouting up around the location, road building and construction, and staff turn over can influence repeat consumers as well as negatively impact future revenues. One essential thing to consider is the area of the business. Is it in a very trafficked shopping center, or is it hidden from the main road? Obviously, the more people that see the business regularly, the better the possibility to build a returning consumer base. A last thought is the basic area demographics. Is the business situated in a densely populated city, or is it situated on the outside border of town? Exactly how might the local mean family income influence future income potential?