Business Overview

* Arkansas based technology services company with established customer base with potential to expand
* High percentage of recurring revenue via service contracts
* Specializes in remote network security and monitoring systems
* Diverse customer base
* Official Microsoft partner
* Majority of work done remotely
* Low overhead

Financial

  • Asking Price: $290,000
  • Cash Flow: $83,333
  • Gross Revenue: $202,000
  • EBITDA: $56,300
  • FF&E: $5,000
  • Inventory: N/A
  • Inventory Included: Yes
  • Established: 2002

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:2
  • Furniture, Fixtures and Equipment:N/A
About The Facility:

Relocatable

Is Support & Training Included:

Seller will provide training

Purpose For Selling:

Seller has another unrelated business they would like to focus on.

Additional Info

The company was established in 2002, making the business 20 years old.

Why is the Current Owner Selling The Business?

There are all types of reasons people choose to sell companies. Nonetheless, the genuine factor vs the one they tell you may be 2 completely different things. For instance, they might claim "I have way too many other obligations" or "I am retiring". For many sellers, these reasons are valid. But, for some, these may simply be reasons to attempt to conceal the reality of altering demographics, increased competition, current decrease in incomes, or a variety of various other factors. This is why it is really essential that you not rely completely on a seller's word, but rather, utilize the vendor's solution along with your total due diligence. This will repaint a much more realistic picture of the business's existing circumstance.

Existing Debts and Future Obligations

If the existing company is in debt, which many companies are, then you will certainly have reason to consider this when valuating/preparing your deal. Numerous businesses take out loans in order to cover things like stock, payroll, accounts payable, and so on. Bear in mind that sometimes this can indicate that revenue margins are too thin. Lots of companies fall under a revolving door of taking loans as a way to pay back various other loans. Along with debts, there may additionally be future commitments to consider. There might be an outstanding lease on tools or the structure where the business resides. The business may have existing contracts with vendors that should be satisfied or might cause penalties if canceled early.

Understanding the Customer Base, Competition and Area Demographics

Exactly how do companies in the area draw in brand-new clients? Often times, operating businesses have repeat clients, which develop the core of their everyday earnings. Particular aspects such as new competitors sprouting up around the area, roadway construction, as well as employee turn over can impact repeat consumers as well as negatively affect future incomes. One essential point to consider is the location of the business. Is it in a very trafficked shopping mall, or is it hidden from the main road? Clearly, the more individuals that see the business regularly, the greater the opportunity to build a returning consumer base. A last thought is the general area demographics. Is the business located in a densely populated city, or is it situated on the outskirts of town? Just how might the neighborhood mean family income effect future income prospects?