Sale of a Hosted Virtual Desktop company

Sale of a Hosted Virtual Desktop company

Reference: HB0166
Turnover: £345k
Deal completed in: 10 months

The Company

This hosted virtual desktop company provides a “desktop screen” as a subscription based service and has an enviable client list with secure, recurring monthly revenue, a business model which is highly desirable to any business acquirer. Being information technology based, it made an ideal acquisition for IT support and SAAS companies looking to expand their client base and/or to diversify into providing a hosted virtual desktop solution.

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The Situation

The company was run by two directors, one technical and one business admin, who each had other business activities and worked part time from their home offices. The technical director had developed the virtual platform with an outside supplier and all other functions from customer helpline to accounting and invoicing were outsourced. However as with all small business there is always a day to day responsibility to ensure customer satisfaction and bring in new customers; the business admin director wanted to return to live his native Portugal and the technical director wanted to raise capital to put into his next venture. They therefore decided to sell the business.

Before coming to Hornblower, the owners had tried to sell the business themselves through their own contacts but without success.

What Hornblower Did

As Hornblower has a particular focus on the IT support and software-as-a-service sector, we were able to line up over 80 interested buyers within a short period of time from our own database. Whilst we received a complete range of offers, there were three clear front runners with whom we were able to negotiate the best market value for the company. Heads of Terms was reached within 3 months of putting the business on the market.

WIN WIN

The buyer was an IT support company which already had a virtual desktop platform. As well as gaining a new additional client base, they are able to benefit from synergies such as providing the remote helpline support in-house as well as over time taking the best technologies from the two platforms and moving all clients to the one platform.

In addition to raising significant funds for their future, the business admin director was able to move to Portugal immediately, whilst the technical director has taken a part time role in the buyer’s organisation.

SOLD - July 2012

Hornblower Business Brokers - Specialists in selling IT support and software businesses

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