IT Services Company

Business Description

For sale is a four-year-old plus California-based software / IT services firm that specializes in building, implementing and maintaining customized applications within the Salesforce ecosystem. The company provides Salesforce certified consultants, project delivery teams, as well as managed services for Salesforce development, Quality Assurance, administration and support.

With offices in California and India, this rapidly growing company is a proven partner with Salesforce and one of the only experts in their business domain space. Since 2015, growth has been at 50% each year and expects to finish 2019 with 37% growth.

The Company works with the IT departments of major, publicly traded corporations as well as high tech startup companies in Silicon Valley. These companies outsource their many Salesforce software development, testing and support needs to the Company. The Company has set up a working model with their offshore teams that ultimately alleviates the common headaches of offshore hiring, training, and local management, as well as communication, retention, and common time zone issues

The Company is well known and established across three core industries: Real Estate Investment Trusts (REIT), biotechnology and pharmaceuticals and media (advertising, marketing and social). The Company specializes in the core Salesforce CRM product as well as Salesforce’s acquired technologies of Marketing Cloud and MuleSoft.

Salesforce is the leading CRM in the world with strong year over year growth at 30% per year. The Company has proven themselves at reliable quality delivery and Salesforce account executives are making direct referrals of new business to the Company.

The company’s client engagements are entirely recurring. The Company begins client engagements with project-based work with typical 3-6 month intervals with team sizes of two to eight developers and QA engineers. This work repeats from project to project as Salesforce technology provides a software platform for customers to innovate and support their business. Clients often move from project-based work to managed services with a dedicated development, testing and support offshore staff. Additionally, many clients ask for onshore Salesforce project management and architecture consultants.

Key points:

  • Recurring business model supported by strong, Salesforce and PMP certified experts
  • Customer base is sticky, with repeat, industry-leading customers
  • Customers look to the Company as preferred, advisory partners
  • Managed services represent a vast majority of recurring business; very stable
  • Salesforce development ecosystem is experiencing reliable, high growth
  • Internal, unique process ensures reliable quality whether onshore or off-shore. It is proven to be highly successful and has created a great reputation for the company
  • Because of the offshore model, the Company is very cost competitive in the industry

Financial Overview

Asking Price: $3,000,000

Revenue: $2,000,000

Income: $936,000

Multiple: 3.2x

The listing is either pending or closed so the NDA cannot be signed