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Business Type: Technology / Information Technology
Technology / Information Technology
We are pleased to offer for sale, this well-established N Texas IT Business Services Company, which is a provider of software imaging & burn in, and hardware integration, hardware support: repair & maintenance. This well-established, 19-year-old business is responsible for managing over 400,000 devices (terminals, scanners, phones, computers, tablets, etc.) in over 7,000 customer locations all around the globe for its department store, specialty retailer, and major restaurant brands. It was established by its husband-and-wife founders in 2003 and is currently a 100% certified woman-owned business. Through their offerings of point of sale (POS) equipment and software, mobility, network engineering, and digital display, this company has established itself as the “go to solution” for its global customer base. This company also fetches over $1.25M per year in maintenance contracts.
Their largest customer is a big box retailer who has been a loyal customer for 19 years now, and have rewarded this company with a sole source IT distinction which has resulted in a significant customer concentration of approximately 45% for YTD 2022. The husband has committed to remaining onboard after closing, indefinitely, to help facilitate a smooth transition of the customers, employees, processes and suppliers to the successful new owner. Over the past four years, this company has generated relatively volatile revenues of between $6.1M and $9.1M, and Owner's Discretionary Earnings (ODE) of a loss of $410K to a high of $429K, which are largely due to an erratic influx of large projects.
The company closed year 2023 at $8.37M, with breakeven cashflow, due to much lower margins on a large $3.5M hardware intensive project, completed in 2023. Through YTD April 2024, the company generated $1.6M in revenues and had SDE (seller discretionary earnings) of $152K, due to a shift in more services driven revenues, which was very much aligned with its YTD April 2023 revenues of $1.6M when it achieved over $8M in revenues for the year. The company has a current 2024 revenue forecast of at least $7.3M.
With the sellers being in their mid-seventies, they are seeking a prompt M&A transaction where a buyer buys their company, including its $1.48M in assets and its $1.54M in liabilities, in exchange for a best offer type sales price, where cash proceeds that would be payable to them at closing, while they are also willing to consider a seller note and/or earnout, as required. One or both owners are available to work, after closing, as employees or consultants, for the successful buyer.
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