Reference Number: HGS014
Location: North West England
- Opportunity to acquire an IT support business, based in the north west of England.
- In the 12 months to 31st October 2015, the business achieved 25% adjusted EBITDA on a total revenue of £113k.
- The business has a strong client base which is geographically spread across Manchester and the north west of England.
- The business has annual contracts with 52 clients for IT Support services. These client contracts are for a minimum of 12 months and are on a rolling basis thereafter with 90 days’ notice required – many have been with the organisation for 3–5 years.
- The total recurring revenue to the business from both IT support and managed services is £50k per annum (44%) with the remaining £63k (56%) accounted for hardware and software sales and ad hoc projects.
- The contracted clients account for over 93% of the total income from additional hardware, software and ad hoc project sales above their service contracts.
- The business was set up in 2010 and has traded well for the last 5 years.
- The business primarily services small businesses in the North West with between 5 and 50 users. Most of the work is completed remotely but occasionally client-site visits are required.
- The business currently employs one member of technical staff to run the day to day support activities plus the vendor/director. The vendor works part-time due to other commitments.
- This business would be of particular interest to other IT support companies that are looking for a ‘bolt-on’ business that brings a substantial number of additional contracts to their books, or a telecoms company looking to move into IT support.
Products and Services
The business offers traditional IT support services including:
- IT Support/maintenance contracts.
- Managed services (including email and web hosting and back-up systems).
- Consultancy and hardware and software sales.
- One full-time technical engineer, in addition to the vendor who works part-time.
The offices are leasehold.
- Size: 18.92 sq. m., plus an allocated car park space.
- Rent: £400 per month.
- Rates: £116 per annum .
Reason for sale
- The owner is retraining to be a mental health professional and to make some other lifestyle changes.
|Year ending 31st Oct||2013||2014||2015||2016|