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Profitable Dallas IT Company w/ Real Estate Income

Profitable Dallas IT Company w/ Real Estate Income
  • Status : Active
  • Relocatable : Yes
  • State/Province: Texas
  • Listed Price : $5,950,000
  • Listing ID : 18078
  • Down Payment : $5,950,000
  • Discretionary Earnings : $725,724
  • Total Sales : $2,609,109
View Details Business Description :

We are pleased to offer for sale, this well-established, twenty-one-year-old family owned and operated North Texas IT Integrator services company, who specializes in integrating voice and data structured cabling systems, fiber optic cabling, paging, audio/visual cabling & equipment, indoor/outdoor communication networks, industrial automation environments, outside plant applications, distributed antenna systems, and Wireless AP installations. While it is not an MSP, it was established by its husband-and-wife founders, in 2002. Their stated mission is to provide their customers with the best service available in the industry, through their offerings of design, installation, and the maintenance of their network infrastructure. 

While this company does not have defined a recurring revenue model, they do hold recurring service contracts that generate approximately $1M in recurring annual revenues. They empower their customers to effectively manage their networks, while boosting their performance levels, enhancing network efficiency, and productivity. They take a consultative approach to every project, by utilizing their deep expertise to propose innovative technology-based solutions that cater to the information transport needs of modern businesses. 

Over the past four years, this company has generated solid revenues of between $3M and $4.5M, and cash flows of between of $679K to $1.3M. A large customer moved into the area, which caused a $2.2M spike in their 2021 revenues, before relocating out of the area, which caused their revenues to fall back to more traditional levels in Year 2022. This same client will be installing another lab or data center in the next year of two which is expected to again drive a considerable increase in the company’s revenues.

They are proud to certified as a Texas State HUB (Historically Underutilized Business), WBE (Woman-Business Enterprise), and a Woman Owned/Minority Business. With a team of over 20 full-time, trained technicians and certified designers, and boasting a combined technical experience of more than 150 years, they have successfully served both small to large companies and organizations.

This company is equipped to handle projects and provide 24-hour service across the entire state of Texas. Their capabilities range from simple cable drops to million-dollar fiber and copper solutions that are meticulously designed. Their commitment is rooted in the value that they provide to our customers. As the preferred single-source vendor, they utilize cutting-edge technology and prioritize quality workmanship to exceed expectations. 

This business has been lender pre-qualified for financing. Qualified buyers would be required to make a down payment of only 10% for the business. 

 


Category :

Technology / Information Technology

N Texas IT Business Services Company

N Texas IT Business Services Company
  • Status : Active
  • Relocatable : Yes
  • State/Province: Texas
  • Listed Price : $0
  • Listing ID : 17534
  • Down Payment : $0
  • Discretionary Earnings : $152,506
  • Total Sales : $1,617,888
View Details Business Description :

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. 

Category :

Technology / Information Technology