Niche IT Firm with multi-year Contracts with "Government" Customers

Dallas, TX (Dallas County)

Seller Financing Available
Niche IT Firm with multi-year Contracts with

Asking Price:$2,500,000

Cash Flow:$881,776

Gross Revenue:$1,164,784





Niche IT Firm with multi-year Contracts with "Government" Customers

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Business Description

This business provides an array of IT products and services, from hosted email to managed servers and switches, primarily to educational facilities in and around a major metropolitan area, with a niche in the rural markets. The business model is to be a “one stop-shop” for clients. In this niche, all aspects of a network must work together, but all too often there are five or more contractors that a public school district may be working with. The company strives to simplify the technology side of things for the public school district by contracting with this business on as many services as possible. Having fewer contractors leads to quicker and cheaper problem resolutions. While most contractors focus on one type of service to all types of clients, this company focuses on several types of services but to one type of client. The financials presented are projections for 2016, however these only include contracted revenue for 2016 and no incremental sales that are certain to come in throughout the year. This business is Pre-approved for SBA financing with 20% down. (this keeps the seller carry to a minimum.)

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Detailed Information

Included in asking price
4 FT
Furniture, Fixtures, & Equipment (FF&E):
Included in asking price
The business leases a small office space primarily for storage and to have a central location, but most of its technicians' work is done on-site with clients or remotely, so the location of the office is not critical.
Growth & Expansion:
The business' primary marketing strategy uses a direct and targeted marketing campaign to their niche customer base. Since the business doesn’t offer simply “widgets” to fix customers' current problems, the sales packages are custom tailored for each client. While bringing in new clients is not an overnight task, when you bring them in, they are very sticky. Additionally, given the sector this business' clients are in, there is very little risk of any sort of significant downturn - the target market is virtually unlimited. The business can also be expanded to other geographical areas, not only within Texas but the company is using a governmental program for their services that is available to customers all over the country.
Seller will consider financing qualified buyers.
Support & Training:
Ownership is available to train as-needed to ensure a smooth transition, and in some cases would be interested in staying with the company post-sale in their current position.
Reason for Selling:
Partnership dispute

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Scot Cockroft

Business Listed By:
Scot Cockroft

HBG Advisors Inc.

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