Business Overview

This Company helps clients maintain their Infor Lawson / Cloudsuite ERP applications. Whether migrating data, integration of data with a client’s acquisition, or security audit, our client’s company is the trusted expert in the field.

Boasting a full U.S. based employee roster, the firm tackles hairy ERP problems head on, skillfully auditing entries, recovering data, and making sure their client’s projects roll out smoothly. Reaping profit in the complexity of challenging ERP issues, they make use of a strong teams-based approach to execute on client’s projects.

With strong, consistent earnings and a great team culture, this Company will not remain listed for long.

NDA required ‘LINK ABOVE} to receive comprehensive Confidential Information Memorandum (CIM) crafted by ProNova Partners.

Financial

  • Asking Price: $6,500,000
  • Cash Flow: $1,160,000
  • Gross Revenue: $1,970,000
  • EBITDA: $1,250,000
  • FF&E: $50,000
  • Inventory: N/A
  • Inventory Included: N/A
  • Established: 2003

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:4
  • Furniture, Fixtures and Equipment:N/A
About The Facility:

Offices used to be located in Newport Beach. The company went full remote during the lockdowns and has not considered returning to in person.

Is Support & Training Included:

As needed – specific terms for transition support can be negotiated. The Seller wishes to facilitate a successful and smooth transfer of the Business.

Purpose For Selling:

Other business interest.

Pros and Cons:

The space is insular, with only about 10 competitors that deal with Infor Lawson / Cloudsuite applications, integrations, and migrations.

Opportunities and Growth:

Two software-as-a-Service revenues streams to turn on, plus a ton of future project work in the space, as clients move their data from one ERP to another.

Additional Info

The business was founded in 2003, making the business 19 years old.

Why is the Current Owner Selling The Business?

There are all sorts of reasons individuals choose to sell companies. Nonetheless, the genuine reason vs the one they tell you may be 2 totally different things. As an example, they may state "I have too many various obligations" or "I am retiring". For numerous sellers, these factors are valid. But also, for some, these may just be reasons to try to conceal the reality of changing demographics, increased competitors, recent decrease in earnings, or a variety of other factors. This is why it is very crucial that you not rely entirely on a seller's word, but rather, use the vendor's answer in conjunction with your total due diligence. This will repaint a more realistic picture of the business's current scenario.

Existing Debts and Future Obligations

If the existing company is in debt, which lots of businesses are, then you will need to consider this when valuating/preparing your deal. Numerous operating businesses take out loans so as to cover items such as inventory, payroll, accounts payable, so on and so forth. Remember that occasionally this can mean that profit margins are too tight. Many companies come under a revolving door of taking loans as a way to pay back other loans. In addition to debts, there may additionally be future obligations to think about. There might be an outstanding lease on tools or the building where the business resides. The business might have existing contracts with vendors that need to be satisfied or may result in charges if canceled early.

Understanding the Customer Base, Competition and Area Demographics

How do companies in the location attract new customers? Most times, operating businesses have repeat consumers, which develop the core of their everyday profits. Specific variables such as brand-new competitors growing up around the location, road building, as well as employee turnover can affect repeat clients as well as negatively impact future earnings. One essential thing to take into consideration is the area of the business. Is it in a highly trafficked shopping center, or is it concealed from the highway? Clearly, the more people that see the business often, the greater the chance to construct a returning consumer base. A final thought is the basic location demographics. Is the business situated in a largely inhabited city, or is it situated on the outside border of town? How might the regional median household earnings impact future revenue potential?