Listing ID: 76505

Business Overview

This reputable Managed Service Provider offers solutions for cybersecurity, connectivity, the cloud, hardware, and general IT consulting. Approximately 75% of revenue comes from recurring revenue. The experienced staff provides smart solutions to businesses that can help drive growth and create a link between complex IT solutions, business systems, and the employees that use them.

The MSP industry is ever-changing and growing rapidly. The future is solid, especially with the increased need for effective cybersecurity solutions.

We feel this would be an excellent acquisition candidate for an existing Colorado MSP looking to expand, or for an industry buyer looking to set up operations in the Rocky mountain region.

Financial

  • Asking Price: $1,595,000
  • Cash Flow: $316,063
  • Gross Revenue: $1,652,716
  • EBITDA: $316,063
  • FF&E: $2,000
  • Inventory: $10,000
  • Inventory Included: Yes
  • Established: 2001

Detailed Information

  • Property Owned or Leased:Own
  • Property Included:N/A
  • Building Square Footage:2,500
  • Lot Size:N/A
  • Total Number of Employees:8
  • Furniture, Fixtures and Equipment:N/A

Additional Info

The venture was started in 2001, making the business 21 years old.
The sale shall include inventory valued at $10,000, which is included in the requested price.

The business has 8 employees and is located in a building with disclosed square footage of 2,500 sq ft.

Why is the Current Owner Selling The Business?

There are all types of reasons people resolve to sell companies. Nonetheless, the real reason vs the one they tell you may be 2 completely different things. As an example, they may state "I have way too many various responsibilities" or "I am retiring". For lots of sellers, these factors stand. But also, for some, these may just be reasons to try to hide the reality of altering demographics, increased competition, current decrease in profits, or a variety of other factors. This is why it is very essential that you not count absolutely on a seller's word, however rather, make use of the vendor's response together with your total due diligence. This will repaint a more realistic picture of the business's existing circumstance.

Existing Debts and Future Obligations

If the existing business is in debt, which numerous businesses are, then you will need to consider this when valuating/preparing your deal. Many operating businesses finance loans so as to cover things like stock, payroll, accounts payable, and so on. Remember that in some cases this can imply that profit margins are too thin. Numerous organisations fall into a revolving door of taking loans as a way to pay back other loans. Along with debts, there may also be future obligations to consider. There may be an outstanding lease on equipment or the building where the business resides. The business may have existing agreements with suppliers that need to be satisfied or might cause penalties if canceled early.

Understanding the Customer Base, Competition and Area Demographics

Just how do businesses in the location bring in new consumers? Most times, companies have repeat customers, which create the core of their day-to-day earnings. Specific factors such as new competitors growing up around the area, roadway building and construction, and staff turn over can influence repeat consumers as well as negatively influence future profits. One important point to take into consideration is the area of the business. Is it in an extremely trafficked shopping center, or is it hidden from the highway? Undoubtedly, the more individuals that see the business regularly, the better the opportunity to build a returning customer base. A final thought is the basic area demographics. Is the business situated in a densely inhabited city, or is it located on the outside border of town? How might the local median house earnings impact future earnings potential?