Seller Financing Available
Gross Revenue: $1,267,227
Network Management with IT Solutions and Service
Network Management with Support and Cloud Service makes this business invaluable to a wide range of clients. For more than 20 years the business has been offering services including cloud migration, design, implementation and support for new technology systems and continuing consultation.
Client size ranges from smaller systems (1 server with 5-25 workstations) to data centers with virtual services and 50+ workstations; and include law firms, printing companies, municipalities and service-based businesses within a 100 mile radius of Sioux City. The business sees an average of 10-15 new clients per year; with an increase of 25 new clients since adding sales staff in November 2015. The current owner is willing to not only offer transition time, but help expand the business by offering consulting services to a new owner. There are growth opportunities in marketing and sales (which have increased since hiring a salesperson in November 2015), telephony opportunities and moving clients to service contracts rather than T&M basis. The current owner owns the business property, and is willing to lease the property for $1,000 per month or sell the property in a separate transaction. With a down payment of $70,800, a new owner could realize a Net Operating Income of $90,168, which is a 127% Return on Investment in the first year! Business Information Service Area: 100 mile radius of Sioux City Services Offered: Cloud migration, design, implementation and support of new technology systems, consultation services Client Mix: Law firms, printing companies, municipalities, service based businesses; average 10-15 new clients per year Demographics: Serves clients ranging from one server locations to large data center clients with multiple servers Employees: 2 administration, 2 project managers (partially billable), and 5 Consultants Growth Opportunities: Increased marketing and sales, telephony opportunities including consulting, moving clients to contracts instead of a T&M basis Current Owner’s Responsibilities: Administrative and accounting support Financial Overview List Price: $708,000 Gross Sales 2015: $1,267,227 2014: $1,117,344 Owner Profit/Cash Flow 2015: $208,469 2014: $163,296 Profit Margin: 16% Multiple: 3.4*Multiples range from 1-5, with the average being 3 Valuation:  Cash Flow x Multiple = Price $208,469 x 3.4 = $708,794 Assets Included in Purchase: $113,575 Equipment: $4,675 3 office servers, 3 data center servers, 2 switches, 2 firewalls, 9 Avaya phones, 3 printers, furniture Intangible Assets: Strong relationships with vendors and customers, website A/R and Work in Progress: $108,900 1-30 Days: $83,000; 30-60-Days: $12,500, 60-90 Days: $11,400 90+ Days: $2,000 *amounts may vary Funding Example Purchase Price: $708,000 10% Buyer Down Payment: $70,800 25% Seller Financing: $177,000 65% Bank Loan: $460,200 With a $70,800 down payment, a new owner can expect to make $90,168 after loan payments and expenses. This is a 127% return on investment in the first year of ownership.
Furniture, Fixtures, & Equipment (FF&E): Included in asking price
Facilities: Building /Lease: willing to lease to new owner for $1,000 per month or to sell in a separate transaction
Growth & Expansion: Increased marketing and sales, telephony opportunities including consulting, moving clients to contracts instead of a T&M basis
Financing: 25% (=$177,000)
Support & Training: 90 days with possible transition to Consultant for 2 years, if so desired
Reason for Selling: Retirement Strategy
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