IT Support & Services Company for IBM Technologies for sale

Reference Number: HGS025

Location: UK Wide

Turnover: £943k

Status: SOLD

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Business Summary

  • 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

Forecast
Year ending 31st Dec20132014201520162017
Sales Revenue£269,283£873,751£1,406,717£1,163,782£942,852
Gross profit£169,967£284,861£378,396£404,250£504,447
Percentage63%33%27%35%54%
Adjusted EBITDA£81,202£142,222£177,131£113,410£200,340
Percentage30%16%13%10%21%
Further Adjusted EBITDA£81,202£142,222£177,131£183,410£270,340
Percentage30%16%13%17%29%
  • Adjusted EBITDA is stated after having accounted for the vendors’ replacement cost.
SOLD

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