IT Support and Consultancy Company – Apple MAC Specialists

Reference Number: HB0298

Location:

Turnover: £1.3m

Status: SOLD

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

YE: 31st March

2008-09

2009-10

2010-11

2011-12

6 months to 30-9-12

Sales revenue

£450,998

£726,258

£1,203,652

£1,587,680

£617,124

Gross Profit

£305,294

£396,876

£581,561

£700,390

£351,631

Percentage

68%

55%

48%

44%

57%

Adjusted EBITDA

£109,702

£156,290

£223,285

£226,154

£86,510

Percentage

24%

22%

19%

14%

14%

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

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