Listing ID: 69950
Business Overview
This near shore company is a highly profitable full-service software company that operates all over the globe but has majority of the concentration within the US (80%). The company specializes in software development with a team of highly specialized software professionals who offer high-quality products and services based on their business knowledge and the use of the latest tools in Information Technology. The company currently employs 110+ employees, with managers in place. The company provides software services all over USA (Florida, Massachusetts, California, Ohio, Texas, etc.), Canada, LATAM, Europe, New Zealand, etc.
The success of this company is evidenced by its nearly 15% year-over-year growth in 2020 and a sustained upward trajectory since 2017. The company surpassed the test of Covid-19 pandemic, with its operations indicating positive growth in 2020. This company’s opportunity has no ceiling, and 35% profit margins in 2020. This ideal service business is easily scalable with expansion into other markets and regions. To complete this offering, a new owner will benefit from intuitive leadership by current management and owners in inheriting a motivated and skilled staff who are ready to stay.
The company was founded in early 2000s and is ISO 9001:2018 certified with extremely high customer and HR satisfaction. This company leverages its 20 years of experience to develop software solutions for its clients in broad areas such as web and mobile application development, data integration and migration, IoT and artificial intelligence among 4 other service offering. The company has really good engineers working with high knowledge in cutting-edge technologies. The employees offer professional behavior, timely execution, quality services, high performance, responsibility, and abundant of knowledge. The company is really content with their engineers and takes good care of them, being demanding in tech but providing the best place of work.
The company’s strengths and really differential points from other vendors is that they know perfectly well their US/CAN customers/partners wants and needs when they look for outsourced software services, they know, share, and agree with their work culture.
Financial
- Asking Price: $16,000,000
- Cash Flow: $1,414,287
- Gross Revenue: $3,965,835
- EBITDA: N/A
- FF&E: N/A
- Inventory: N/A
- Inventory Included: N/A
- Established: 2001
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:110
- Furniture, Fixtures and Equipment:N/A
Leased
The current owner(s) are willing to stay on for an agreed period to help a new owner transition successfully into the business/company.
The owners of this company are ready to retire.
Additional Info
The company was started in 2001, making the business 21 years old.
Why is the Current Owner Selling The Business?
There are all types of reasons individuals choose to sell operating businesses. However, the genuine factor vs the one they say to you might be 2 absolutely different things. As an example, they may say "I have too many various responsibilities" or "I am retiring". For many sellers, these factors stand. But, for some, these may just be excuses to try to conceal the reality of changing demographics, increased competition, current decrease in earnings, or an array of other reasons. This is why it is extremely essential that you not depend completely on a seller's word, but instead, make use of the seller's answer in conjunction with your general due diligence. This will repaint a much more practical image of the business's current situation.
Existing Debts and Future Obligations
If the current company is in debt, which numerous companies are, then you will need to consider this when valuating/preparing your offer. Many businesses take out loans so as to cover points like stock, payroll, accounts payable, so on and so forth. Bear in mind that sometimes this can imply that earnings margins are too small. Lots of businesses come under a revolving door of taking on debt as a way to pay back various other loans. In addition to debts, there may also be future commitments to take into consideration. There may be an outstanding lease on equipment or the building where the business resides. The business may have existing contracts with suppliers that should be fulfilled or may cause charges if terminated early.
Understanding the Customer Base, Competition and Area Demographics
Just how do businesses in the location attract new customers? Often times, businesses have repeat clients, which form the core of their daily earnings. Specific variables such as brand-new competition sprouting up around the location, road building and construction, as well as personnel turn over can impact repeat customers and also adversely influence future profits. One essential point to think about is the placement of the business. Is it in a very trafficked shopping mall, or is it hidden from the highway? Clearly, the more people that see the business often, the better the chance to construct a returning consumer base. A last idea is the general location demographics. Is the business situated in a densely inhabited city, or is it located on the outskirts of town? Just how might the regional mean house income influence future earnings potential?
