Managed Service Provider (MSP) with Recurring Revenue

Overview

Provider of Managed IT Support Services, including Voice, Data, Internet, Secure Networks, and Cybersecurity with Cash Flow of $446,000 (Jan-May 2023)

• YTD May $1.77M in revenue 41% recurring and adjusted EBITDA of
$446K (25%)
• 680+ Customers
• 35+ Suppliers
• 9 Knowledgeable employees with over 6.5 years of average tenure
• FY 2022 $2.47M in revenue with $1.07M (43%) recurring
• 36-month contracts

Headquartered in the Southeast and established in 2006, the company specializes in providing technology resources to small and medium-sized businesses, offering an extensive range of products and MSP services. Offerings include telecommunications hardware and services, VoIP, cloud computing, security solutions, managed services, infrastructure management, low voltage installation, access control, security camera installation, audiovisual (AV) services, and sound masking installation.

The company sets itself apart through its comprehensive approach, providing voice, data, internet, wireless, video, and secure network solutions, all conveniently available under one roof. With the support of local technicians, specialized expertise, exceptional client service, and tailored solutions from various vendors, the company ensures uninterrupted connectivity at competitive prices.

The customer base spans nationally, with a geographic focus in the Southeast.

They take pride in serving over 680 customers and collaborating with 35 suppliers. The team consists of nine dedicated employees, including the owner, with an average tenure of six and a half years.

Recently, in the first quarter of 2023, the company successfully completed the strategic acquisition of a competitor Sales Agency for Service Providers, which will add approximately $390K in annual revenues and 90 new customers for 2023 with minimal additional expenses.

With this competitive acquisition and the addition of other new accounts, the company is seeing tremendous growth in 2023, with revenues reaching $1.77 million in the first five months of the year, along with improved adjusted EBITDA margins of 25% compared to 11% in 2022.

A significant portion of revenue is generated from recurring customers, comprising approximately 42%, with many customers under 36-month contracts. In 2022, recurring revenue accounted for $1.07 million (43%), and for January to May 2023, it accounted for $740K (41%).

As the owner aims to expand the business further through continued acquisitions, they are actively seeking a partner to accelerate this growth. The current owner has plans to remain with the company, continuing his leadership role while retaining equity and actively driving the acquisition process.

- 2023 Jan–May – Gross Revenue $1.77M, Gross Profit $779K, Adjusted
EBITDA $446K
- 2022 – Gross Revenue $2.47M, Gross Profit $801K, Adjusted EBITDA
$251M
- 2021 – Gross Revenue $3.39M, Gross Profit $1.29M, Adjusted EBITDA
$479K
- 2020 – Gross Revenue $2.37M, Gross Profit $1.63M, Adjusted EBITDA
$256K