IT Support and Consultancy Company – Apple MAC Specialists

Business overview

–      Outstanding opportunity to acquire a highly profitable and growing IT support and consultancy company specialising in MAC support, based in central London.

–      The business has delivered steady growth over the past 4 years and achieves 14% net profit.

–      Established in 2005, the business has developed an extremely loyal client base which is evenly spread with no one client representing more than 11% of the revenue.

–      Over 90% of current business is from the existing client base which includes media, architectural, retail, fashion and finance sector clients.

–      53% of revenue is recurring generated from 60 clients who have IT support and/or managed service contracts and make regular monthly payments. Circa 70% of the total revenue is generated by those customers on IT support and/or managed service contracts.

–      The business has a well defined brand and unique service offering in what is a crowded market sector: focused on medium sized businesses in the creative sector.

–      The business employs a team who can run the business day to day with minimal input from the vendor, who is focused on business development and sales.

–      This business would be of particular interest to other IT support companies that are looking for a strategic acquisition to add to their portfolio. Significant synergy savings are possible for such buyers who already have a base in London/South East UK.

Products and Services

–      The business offers IT support services on a business to business basis including:

• IT support and maintenance contracts
• Managed services (including email hosting, offsite backup, broadband)
• Consultancy projects
• Hardware and software sales
• VoIP telecoms (introduced in Q2 2012)

–      The company offers consultancy tailored for the SME/medium sized market predominantly in the creative sector. However more recently there have been increasing opportunities outside of the traditional sectors.      

Employees:

-        1 director (vendor) + 2 office admin + 8 engineers + 1 part time consultant + 1 part time book keeper

Premises:

-        The business operates from a leased office.

-        Rent: £16,260 per year + Rates: £2,748, 3 month notice period

Reason for sale:

-        After seven years, the director is pleased to have built the business to its current size, but feels that the business would now strongly benefit from being part of a larger organisation with the infrastructure to manage a growing team and client base.

Financial overview

The adjusted EBITDA is stated after having paid the replacement cost of the vendor.

Significant synergy savings of £60k are possible through consolidation of the premises and other administrative costs. Based on the 2011-12 figures, this would enable the strategic buyer to achieve an EBITDA of £286k.

SOLD