Business Overview

Information technology staff augmentation and services firm formed in 2007 for sale. They specialize in providing IT professionals for contract, contract-to-hire, and direct placement. They work with the customer to define their needs and find the right resources at an extremely competitive price. They have public and private contracts, ie state and large companies. They provide a high level of service at the most cost-effective method possible and has been proven to be an asset to its customers.

Financial

  • Asking Price: $1,599,000
  • Cash Flow: $530,412
  • Gross Revenue: $4,900,000
  • EBITDA: N/A
  • FF&E: N/A
  • Inventory: N/A
  • Inventory Included: N/A
  • Established: 2007

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:3
  • Furniture, Fixtures and Equipment:N/A
Is Support & Training Included:

Seller will transition with new owner as needed.

Purpose For Selling:

Retirement

Additional Info

The venture was founded in 2007, making the business 15 years old.

Why is the Current Owner Selling The Business?

There are all sorts of reasons why people resolve to sell businesses. However, the true reason vs the one they tell you may be 2 totally different things. As an example, they may say "I have a lot of various commitments" or "I am retiring". For numerous sellers, these reasons are valid. But also, for some, these might simply be justifications to try to conceal the reality of changing demographics, increased competition, recent decrease in profits, or an array of various other factors. This is why it is very crucial that you not depend entirely on a seller's word, yet instead, utilize the seller's response together with your overall due diligence. This will repaint an extra sensible picture of the business's present circumstance.

Existing Debts and Future Obligations

If the existing company is in debt, which lots of companies are, then you will have reason to consider this when valuating/preparing your offer. Many companies take out loans in order to cover points such as supplies, payroll, accounts payable, etc. Bear in mind that sometimes this can indicate that earnings margins are too small. Lots of businesses fall under a revolving door of taking loans as a way to pay back various other loans. In addition to debts, there may also be future obligations to consider. There might be an outstanding lease on equipment or the structure where the business resides. The business may have existing agreements with vendors that should be fulfilled or may result in fines if canceled early.

Understanding the Customer Base, Competition and Area Demographics

How do companies in the area bring in new clients? Many times, companies have repeat clients, which develop the core of their day-to-day earnings. Specific aspects such as new competitors sprouting up around the area, road building and construction, and also employee turn over can influence repeat customers and negatively influence future incomes. One essential point to consider is the location of the business. Is it in a highly trafficked shopping center, or is it concealed from the highway? Obviously, the more people that see the business regularly, the better the opportunity to construct a returning customer base. A last idea is the basic area demographics. Is the business placed in a densely populated city, or is it located on the outskirts of town? Just how might the local mean home earnings effect future revenue prospects?