North Texas IT Business Services

Seller Financing Available

This company has no list price and will be sold to the highest bidder.

We are pleased to offer for sale, this well-established N Texas IT Business Services Company, which is a provider of software imaging & burn in, and hardware integration, hardware support: repair & maintenance. This well-established, 19-year-old business is responsible for managing over 400,000 devices (terminals, scanners, phones, computers, tablets, etc.) in over 7,000 customer locations all around the globe for its department store, specialty retailer, and major restaurant brands. It was established by its husband-and-wife founders in 2003 and is currently a 100% certified woman-owned business. Through their offerings of point of sale (POS) equipment and software, mobility, network engineering, and digital display, this company has established itself as the “go to solution” for its global customer base. This company also fetches over $1.25M per year in maintenance contracts.

Their largest customer is a big box retailer who has been a loyal customer for 19 years now, and have rewarded this company with a sole source IT distinction which has resulted in a significant customer concentration of approximately 45% for YTD 2022. The husband has committed to remaining onboard after closing, indefinitely, to help facilitate a smooth transition of the customers, employees, processes and suppliers to the successful new owner. Over the past four years, this company has generated relatively volatile revenues of between $6.1M and $9.1M, and Owner's Discretionary Earnings (ODE) of a loss of $410K to a high of $429K, which are largely due to an erratic influx of large projects.

The company posted revenues of $8.4M, in 2023, and they will have a reasonably good start to Year 2024 as all of this 2023 hardware has to be installed, will generate an additional $500K - $600K in revenues, integration, install and project management revenue, plus additional annual maintenance fees, that are yet to be determined. One of their largest big box retailers, has asked them to permit them to sign for 5-year contract, instead of the more typical 2 year contract, which would total an overall $5M in new business, and they are adding new services such as network support etc, that will generate incremental revenue.

While they enjoy very strong, long standing relationships with their major customers, they have been reluctant to pass along increased costs onto their customers, which has contributed to its average break even ODE over the past few years. The Government’s Producer Price Index (PPI) data, which tracks prices paid to the producers of goods and services, reveals a steep year-over-year price hike for host computers and servers -- a 21% surge over pricing levels in June 2021.

They now have two professional sales representatives. One of their sales reps has been with the company for 7-8 years now and the other one is a new hire. The owners believe that they are capable of producing sales of $16M or more per year, in the future.