Business Overview

Since 2015, this successful Managed Service Provider has handled the computer needs for many businesses in Central Oregon and surrounding towns. The MSP manages the customer’s information technology and end user systems. These small to medium sized businesses depend on the MSP to handle everything from network security to network implementation. This business offers other services such as subscription-based software (like antivirus), remote management, and software hosting.

This business also has expertise in web services and are able to design, implement and maintain websites for all sorts of businesses.

A new owner would benefit from some general IT knowledge, but the employees can handle most of the technical aspects. The current owner will assist in a smooth transition so local businesses would not be affected and continue to receive top notch service.

Financial

  • Asking Price: $200,000
  • Cash Flow: $83,587
  • Gross Revenue: $480,809
  • EBITDA: N/A
  • FF&E: $15,000
  • Inventory: $5,000
  • Inventory Included: Yes
  • Established: N/A

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
Is Support & Training Included:

2 weeks

Purpose For Selling:

relocation

Additional Info

The deal will include inventory valued at $5,000, which is included in the asking price.

Why is the Current Owner Selling The Business?

There are all sorts of reasons people resolve to sell operating businesses. Nonetheless, the true factor vs the one they tell you might be 2 absolutely different things. For instance, they may say "I have way too many other responsibilities" or "I am retiring". For many sellers, these reasons are valid. However, for some, these might just be excuses to attempt to hide the reality of transforming demographics, increased competition, recent decrease in incomes, or an array of other factors. This is why it is very important that you not rely entirely on a vendor's word, yet instead, utilize the seller's response combined with your overall due diligence. This will repaint an extra practical image of the business's existing situation.

Existing Debts and Future Obligations

If the current business is in debt, which numerous businesses are, then you will have reason to consider this when valuating/preparing your deal. Many businesses take out loans so as to cover items such as supplies, payroll, accounts payable, etc. Bear in mind that in some cases this can mean that earnings margins are too tight. Numerous companies fall into a revolving door of taking on debt as a way to pay back various other loans. Along with debts, there may likewise be future obligations to take into consideration. There might be an outstanding lease on equipment or the building where the business resides. The business might have existing contracts with vendors that should be fulfilled or might lead to fines if terminated early.

Understanding the Customer Base, Competition and Area Demographics

Exactly how do businesses in the location attract brand-new customers? Many times, businesses have repeat clients, which develop the core of their everyday revenues. Specific variables such as brand-new competitors sprouting up around the area, roadway building and construction, and also staff turnover can impact repeat consumers and also negatively influence future incomes. One important thing to consider is the location 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 opportunity to build a returning customer base. A final thought is the general area demographics. Is the business placed in a largely inhabited city, or is it situated on the edge of town? Exactly how might the regional typical family earnings influence future revenue potential?