IT Support & Telecoms Company SOLD

• Outstanding opportunity to acquire an established, fully managed IT and Telecoms company, specialising in broadband and cloud services based in the East Midlands.

• The range of services offered include Office 365 migrations, Hosted Telephony, Broadband and managed service wraps.

• Customers are predominantly based within the professional services sectors, including solicitors, estate agents, accountants and insurance companies.

• The business has grown to over 90 clients with turnover to July 2014 of £705K and an adjusted EBITDA of £80K. Projected revenue to July 2015 is £677k with projected EBITDA of £115k.

• IT related recurring revenues are c.£10k per month and Telecoms recurring revenues are c.£25k a month, which gives rise to a combined annual recurring revenue of c.60% of the annual total.

• The business has a healthy sales pipeline including some larger scale prospects.

• All customers are signed to robust contracts of between one and three years with automatic rollover of contracts for clients of 10 users and above.

• IT support is provided on primarily fixed price per user contracts.

• Customers range from small (1-5) to 130 users, averaging 20.

• Customers are mainly based in the East Midlands, with other telephony-only clients nationwide.

• Most customers are on Office 365 with servers being migrated to VMware/Office 2012 environments.

• The business has innovative branding including an outstanding website, and the directors have focused on continual improvements to processes and policies.

• The acquisition of the company would likely appeal to businesses wanting to make a strategic bolt-on to an existing IT/telecoms company infrastructure to grow their portfolio of clients.

• The two vendors are willing to work with the new owners to support a short-term handover for an agreed term.

Reason for sale

• The two directors are seeking to radically change direction and want to sell the business in order to fund voluntary work, other non-competing business interests, and to travel.

Products and Services

• IT Support
• Business Broadband
• Telecoms Services
• Broadband Services

 Employees

• Two full-time Directors (the vendors), two part-time employees (a marketing assistant and internal sales assistant), and two technicians.

Premises

• Fully serviced rented offices on a 6 year term (since January 2012). There is no formal lease agreement and therefore notice can be served at any time.

• Rent £1000 a month.

Financial overview

SOLD