IT Support & Services Company for IBM Technologies for sale

• Highly successful provider of IT Support and Services company for IBM technologies.
• Based across the UK with its largest clients located in London, Birmingham and Glasgow.
• Turnover for the year to December 2016 was over £1.16m with a gross profit of 35%.
• The forecast for 2017 is for a turnover of £943k with gross profit of £504k or 54%.
• Out of a revenue of £1.16m in 2016, £372k (32%) is for IT support services.
• Out of a forecast turnover of £943k in 2017, £403k (43%) is expected to for IT support services.
• The company is quickly approaching the point where approximately 50% of its turnover will be from high margin IT support services.
• Two clients have multi-year year support contracts that together are worth £168k or more than 40% of IT support revenue.
• All clients buy blocks of days for IT support services as required on a project basis.
• The business has a desirable client base of blue-chip companies and high client retention rates.
• The client base is mainly made up of businesses in the retail, business services and transport sectors.
• The business would be of particular interest to other IT support, cloud services and/or telecoms companies that are looking for a strategic acquisition to add to their portfolio and could make significant synergy savings.
• Being an IBM Premier Business Partner in the social space; the acquisition of the company is likely to be of particular interest to other IBM partners globally or a Microsoft partner looking to diversify.
• There is a strong team of qualified technical staff in place.
• The company has excellent cloud based financial management systems in place.

Products and Services

IT Support Services:

• 24/7 Support and Systems Management
• Desk side or on-site support
• IT co-sourcing and outsourcing
• Software procurement
• Migrations

Managed Services:

• Hosted email
• Hosted virtual servers
• Managed data back-up
• Virtual Disaster Recovery

Software development

• Integration, development and support of IBM Collaboration solutions

Employees

• 2 Directors, with 3 full-time and 1 part-time members of technical staff.

Premises

• Rented office - lease on 1 months’ notice.

Reason for sale

• The vendors are pleased to have built the business to its current size and profitability. However, each Director also has 2 other business interests and have taken the decision to exit this business to focus on those other interests now this business has a very solid foundation and platform from which to grow.

Financial overview

• Adjusted EBITDA is stated after having accounted for the vendors’ replacement cost.

SOLD