Michigan Managed IT Service Provider

Business Description

For sale is a 19-year-old Managed IT Service Provider that serves Southeast Michigan and the Detro Metro area. They provide turn-key managed IT services and solutions for small and medium-size companies and currently have 35 active clients (most of whom have been customers 5+ years).

Their revenue is 80% recurring revenue on the service side and 20% revenue from hardware/software sales (products they buy from suppliers and then mark up 10-15% for their customers). Their clients pay on a month-to-month basis with plans applicable to their number of employees (typically averaging $3K-$5K a month per client). Due to their low overhead and streamlined operations, they have consistently shown margins in excess of 50% and their revenue and profits have grown YoY. In their almost two decades of business, they’ve had an extremely low churn rate of less than 10%.

The business is run almost exclusively remotely, though a few of the larger clients (100+ computers) do require a tech onsite 1-2 days a week. The office location could be dispensed with if desired as it’s currently only used to house servers for a few clients.

There are two owners and four staff members, but one owner/operator could absorb the management responsibilities. The owners are open to either exiting or staying on to help scale the business, and there is a key team member who could be promoted to take over their roles if desired.

The business has been pre-approved for an SBA loan for a qualified buyer.

Financial Overview

Asking Price: $2,800,000

Revenue: $1,236,480

Income: $668,439

Multiple: 4.18x

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