Strategic Buyer Seeking IT Services Company 

Company Background

Business Brokerage Advisors is advising a client who is seeking to acquire, merge with or partner with multiple businesses within the IT services space. The client is a leader in the telecommunications and IT services industry, furthermore, they have displayed strong organic growth year over year. The company was founded in 1936 and has undergone multiple mergers, acquisitions, and name changes, however the core staple of the business, being customer and employee satisfaction, has stayed intact over the 80+ years within the industry and through each of the 10,000+ customers they have served.

The company has a diversified set of service lines but they specialize in Managed IT, Cloud Computing, Cybersecurity and VoIP services. They currently serve 3 major metropolitan regions across two locations. Employee stratification is extremely important to the company as proven by their outstanding employee retention rate. The average tenure of an employee is 15+ years. The company’s Executive Leadership Team has 72+ years of deep industry experience and has extensive hands-on experience on the buy-side, sell-side and company integration/implementation.

 

Motivations of the Buyer

Our buyer is extremely motivated and well funded for an inorganic growth opportunity but their main desire is to grow their employee base and by result grow their revenue and profitability. They are seeking tenured, experienced employees that willing to stay with the new company.  They are open to different offer structures, different type of acquisitions, partnerships or mergers, and different ‘go-forward’ plans in integration, this includes the current owners staying onboard of the new company. Finally, they would like to further diversify their service lines to be able to offer more services to their existing customers and potential new customers.

Employee Growth: They are committed to fostering career development and providing opportunities for current and future employees to grow within a dynamic and expanding organization.

Revenue & Profitability Growth: Acquiring a IT services business that aligns with their strategic and financial goals of increasing revenue to enhance profitability through synergies and economies of scale.

Expansion of Managed IT Services: Integrating a similar business allows them to broaden their portfolio of Managed IT Services, offering comprehensive solutions to meet evolving client demands.

Enhancement of Cybersecurity Line: Cybersecurity is a high demand product in the industry and strengthening the cybersecurity capabilities they offer is a priority, they would like to enhance their expertise and service offerings in this critical area.

Advancement in Cloud Computing: Emphasizing cloud computing solutions is key to their growth strategy, expanding on this service through acquisition will help them expand their portfolio of services.

 

Acquisition Criteria

  • Annual Revenue up to $5+ million
  • Located in Cincinnati or Columbus metropolitan regions (Dayton, Northern Kentucky, or Eastern Indiana included)
  • Stable Revenue Streams – recurring revenue is preferred but stable revenue which indicates consistent financial performance is accepted

 

Next Steps

If you are interesting in learning more about this opportunity – we would like to schedule a meeting to learn more about you. We are not asking for a definite commitment at this time, but time to further explore the opportunity. As time progresses we then can decide if it’s a fit, and then we will make an introduction to our client.

We value strict confidentiality and respect your privacy, therefore, we do ask that you sign an NDA prior to meeting with us, you can find the NDA on this link. Please either reach out to Brian Allen via email at brian.allen@businessbrokerageadvisors.com or schedule a time here on Calendly!

We look forward to working with you to ensure a successful transition that benefits all parties involved!