Services - Computer & Software

Asking Price	Not Disclosed	Inventory
Gross Income	Not Disclosed	Real Estate
Cash Flow	$628,000	Year Established	2000
FF&E	N/A	Employees	23

* included in the asking price

** not included in the asking price

This market leading technology and interactive development firm, based in a major metro market in the Northwest, develops custom software, software products and integration solutions designed to help clients leverage technology to improve their businesses. With 23 employees (primarily software engineers and project managers), the company is organized into three groups. It derives 75% of sales from development (portals, collaboration platforms, web applications, business intelligence, systems integration), 20% from interactive design/development, and 5% from MS Dynamics ERP Software (customization, integration, implementation, support of NAV). Competitive Advantage: As the largest Microsoft Gold Certified software development firm in the region, the company has competencies in Custom Development Solutions, Information Worker Solutions, Business Solutions and Mobility Solutions. The team is also the region's leading provider of SharePoint Deployment Planning Services assisting clients through technology analysis and deployment, and has secured an agreement to provide SharePoint services for one of only three authorized Large Account Resellers in the US. In a recent beta test of Microsoft’s new Business Value Planning Services (BVPS) packaged services initiative with 17 Gold Certified partners, the firm secured the most new clients. Technical expertise is further shown by recognizing several software companies that have relied on the firm to develop mission-critical products for them, such as Microsoft, ProClarity (acquired by Microsoft), Strategic Oxygen (acquired by Monitor Consulting Group), and Healthwise. In addition to Microsoft technologies, the company has wide-reaching technical expertise in Java, Oracle and various open source languages and products, so that it is particularly adept as a systems integration services firm of disparate systems (e.g., legacy systems, proprietary systems and systems that run on different platforms).

Facilities: The firm operates out of 4,200 square feet of historic leased space in an up and coming area of renewal in the city and a destination location for many of the companies that compete in the technology sector. The organization utilizes the entire building with offices on both floors and storage in the basement. There is sufficient room for up to 30 employees in the current configuration. The building includes a large conference room which has been outfitted with the necessary conference phone, white boards, projector and projection screen.

Competition: This firm’s services fall into several IT consulting industry segments including: website design, computer services, systems integration, custom application development. Systems integration is one of the largest segments in the IT services market, with expected growth of 5% CAGR between 2006 and 2011 to $103 billion. Systems integration is increasing rapidly mainly due to advancing technology, shortage of technical personnel, and complexity of automating front-office processes.

Growth/Expansion: In total and despite the unfolding global recession, industry forecasts are still favorable for continued growth in 2008 and 2009 for IT services, software, and outsourcing sectors. Forrester Research has raised its 2008 estimates for technology spending, with a forecast of a 7.1% increase in software spending, 5.8% growth in IT services and a 4.2% jump in IT outsourcing.

Support/Training: Two of the founders are dedicated to the IT Services industry and are interested in continuing in management and/or consulting roles with the company. The third owner is motivated to eventually leave the company to pursue other entrepreneurial interests but is willing to remain as long as necessary to ensure an orderly transition.

Reason Selling: A larger technology services company will be able to leverage its expertise.