The company is a well-established business consisting of eleven full-time staff and three long term off-shore contractors. They have had an impressive profitability track record since their inception. With its main office located in Northeastern U.S., the company has been delivering exemplary software services to regulatory agencies in a nearby state for many years and is uniquely qualified to continue delivering these services and more.
In business since 2001, the company provides software design, development and support services to state agencies that protect the health, safety and welfare of the public by regulating professions, activities, sites, and other entities through compliance and education. Their experience working with the state and expertise in licensing methodology provide these agencies with a more valuable product than the typical software development vendor. The company is often engaged by new agencies based on their exceptional reputation and strong referrals from existing clients. The number of agencies choosing to manage their licensing and enforcement process using the company’s software solution has steadily increased over the years.
Due to the niche nature of the business, the company does not compete directly with any “top competitors.” A long-term contract with its service state has an annual value of $2 million plus unused funds carried over from prior years. Revenue from this contract represents 100% of the company’s total revenue, 100% of which is recurring.
While achieving impressive financial results over the past years, the company still has significant opportunity to grow by targeting other agencies within its current serviced state. Becoming part of a larger company would allow for more dramatic growth by positioning the company to broaden Its service offerings within the currently serviced state as well as being able to to expand into other states.
With over $2.3 million in total income, $487K in seller’s discretionary cash flow, an average EBITDA margin of 20%, the purchase price for the company is $1.3 million, although the other terms of the transaction are negotiable.
- Established company of 17 years with impressive track record
- Consistently profitable over the years of operation
- Niche leadership position in the licensing space
- Long-standing, strong relationships with service state and its agencies
- Healthy margins with an average EBITDA of ~ 20%
- Unlocked growth potential with unexploited opportunities within and outside of service state
- Long-term contract in place with a yearly value of $2MM
- Highly skilled staff with expertise in licensing and strong software development skills
- Exceptional customer support
The company is wholly owned by two of three directors. They are selling the business for two primary reasons: 1) the three directors have recently entered their 60’s and would like to have a succession plan in place with buyers qualified to sustain and grow the company going forward; 2) becoming part of a larger company would position the company to grow in ways they cannot at their current size. The current directors are willing to negotiate terms of their stay to ensure a smooth transition and long-term continuity. It is very important to the directors that their staff continue to have a great place to work and that the company maintains its commitment to providing the serviced state with an unparalleled level of service as it has for the last 17 years.
|BUSINESS||§ N/A||ASKING PRICE||§ $1.3mm|
|LOCATION||§ Northeastern U.S.||INVENTORY||§ N/A|
|YEARS IN BUSINESS||§ 17 Years||FF&E||§ $72,293|
|EMPLOYEES||§ 11 staff, 3 full-time contractors||TERMS||§ Negotiable|
|HOURS||§ Mon. – Fri: Standard business hours||OWNERSHIP||§ 100%|
|FACILITIES||§ The business site is leased.
§ 2,139 Sqft.
§ Rent Expense: $45,989/ year, or $21.50 persquare foot.
|REASON FOR SALE||§ The three Directors of the business have recently entered their 60’s and would like to have a succession plan in place with individuals qualified to sustain and grow the company going forward.
§ Being acquired by a larger company would position the business for growth into other states and allow it to broaden its services