Reference Number: HEM014
– Outstanding opportunity to acquire a highly successful Telecommunications and IT services provider based within the M25.
– One touch source for IT & Telecommunications services including IT network design and support, business communication solutions and audio visual installations.
– Established in 2007 with an extremely loyal client base of over 100 customers.
– No one client represents more than 10% of total revenue.
– Customer size is typically up to 100 users with the majority being 10-20 users.
– Client base is well spread and includes global organisations, blue chip PLC’s. private equity companies, law firms and Government offices.
– 33% of current revenue is generated from IT support contracts for IT, Telecoms and AV
– All support contract customers pay monthly in advance by direct debit or annually in advance.
– Support contracts are for an annual term and require 90 days notice beyond the initial 12 months.
– All IT and Telecom support functions are provided by sub-contractors but the company maintains the ultimate client accountability / relationship with all customers.
– Services include Least Cost Routing and billable minutes but because the solutions for these services are provided by a third party provider on a commission only basis, there is significant potential upside for any buyer who provides these services directly.
– The average billable call minutes are currently 280,000 per month.
– Telecom related contracts are typically 3-5 years duration.
– Telecoms related revenues accounted for c.35% of total revenues in 2013.
– The business would be of particular interest to other IT support companies that are looking for a strategic acquisition to add to their portfolio or to Telecom companies looking to develop into IT support. Significant synergy savings could be realised particularly by buyers who were already servicing customers in the South of England.
Reason for sale
– The Vendor believes that he has taken the business as far as he can without further investing in the infrastructure to support further business growth. Having realised the sale of the company the vendor would also be interested in working within a larger company or group in a potentially more expansive role as well as to manage the transition of ownership of his current business.
Products and Services
– The business offers IT support and Telecommunications services on a business to business basis including:
- IT Support/maintenance contracts
- Consultancy/Network redesign projects
- Business Telephone systems
- Computer hardware and software sales
- Least Cost Routing
- Video Conferencing
– The company has no employees and all functions are controlled by the sole director and shareholder
|YE: 30th November|