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.