Business Summary:
This Company has been providing high quality IT Managed Services (including PC, server, and network support and maintenance) to a wide variety of customers for several years. As a Managed Service Provider (MSP), the Company fully takes over the day to day responsibility for a client’s system and delivers a more efficient, proactive and preventive type of support than either the client or an outsourced support company operating on a time and materials basis would be able to provide. Clients sign a two year fixed price service agreement that provides a steady stream of recurring monthly revenue in addition to projects, upgrades and revenue from work that is outside the scope of the agreement. Currently, the Company has a core of 20 clients, each of which generates $10,000 or more in annual Managed Services revenue, and 20 additional clients that provide a mixture of fixed price and time and materials revenue. Approximately 350 customer computers and servers are covered under Managed Service agreements. The Company has developed a comprehensive, leading-edge remote management system to monitor the clients’ systems, carry out preventive maintenance and fix more than 85% of customer problems without having to send a technician onsite. The system is tied into the Email, trouble ticketing, time tracking and accounting systems. It can accommodate several times the number of present clients with no further expansion or investment. A strategic buyer could realize significant financial benefits by: (1) Capitalizing on the efficiencies of the Company’s advanced remote management system; (2) Taking on the existing Managed Services contracts with their recurring monthly revenue; and (3) With minimal expansion of its own overhead, bringing most of the Company’s gross margin directly down to its own bottom line.
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| Year
Business was Established: 2002 |
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| Number of Employees:
5 |
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| Facilities / Terms of Lease:
The business operates out of leased space. Lease is up in March 2010. It can either be extended or the business moved to another location in the same general area. |
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| Potential
Growth/Expansion:
The Company’s highly advanced, fully-automated remote management system is at the leading edge of the IT industry’s trend towards the fixed price, proactive, managed service support model. It can accommodate several times the number of present clients with no further expansion or investment. Thus, almost all the gross margin from new business (or a buyer’s existing business) could go straight to the bottom line. |
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| Competition:
There are a large number of outsourced IT support providers in the Company’s market area, and no one company has a dominant share of the market. New providers come into the market frequently. The field is highly competitive, but the Company separates itself from its competition on the basis of technical ability, timely response, and clear customer-friendly communications between the techs and the clients. |
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| Owner
willing to train:
The Owner/Founder is willing to remain for a reasonable transition period. The Chief Technical Officer, who currently manages most of the Company’s accounts, is willing to remain on a permanent basis if that would be of interest to the buyer. |
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| Reason for selling:
The Owner/Founder wants to make a career change. |
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Seller Reference Number: B-111
BusinessMart.com Listing Number: 69799 |
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