Dev Ops IT Engineering Firm NorCal 386k Net!

Asking Price:$1,200,000 Gross Income:$791,000 Cash Flow:$386,400
EBITDA: FF&E: Inventory:
Real Estate: Established:2004 Employees:12

Business Description

This exciting dev ops engineering / IT consulting Company has a diversified client base that caters to and concentration within the fabless semi and IoT industries. IoT is making a ton of press now, yet only to find out that it's very easy to hack and manipulate and these kinds of new products.  Can put in measures and put it in to the code that you can't hijack the baby monitor, or shut off your car on the freeway, it's weakness b/c it's not designed up front it's more time consuming and expensive to fix. 9 active clients, span the range of middle market to Fortune 100 clients, with over ~ $60,000 in monthly recurring revenue. Net income assumptions are based on a continued employment/consulting arrangement with the Owner, so the net could be higher if the Buyer and Seller part ways immediately after Closing. Significant upside exists within the existing client base to upsell other project based support and services for the right Buyer. Currently focused in the greater Silicon Valley area, this Company is primed for growth beyond if the Buyer's management team desires. There is an entire offshore team of 4 engineers in place but there are others at the ready should the Buyer bring on board more sales. The Company provides an end to end proactive support structure for their client base. Range of services include job submissions based on LSF, they deal with licensed servers, and have the ability to look into their client’s machines to determine the root cause of an IoT device failure by performing tests and checks for what brought any given IoT device down. This is a highly proactive firm for large clients as opposed to a reactive break/fix organization. 40+ page introductory package is on file with Ace Business Brokers.

Additional Features

Furniture, Fixtures, & Equipment (FF&E): Included in asking price

Facilities: 800 square foot Class B office premises, fully turnkey and built out ready for new management. Ideal situation for an out of state player looking for a California or specifically Northern California footprint…

Competition: Competition is present, but this Company’s senior and engineering staff has the skills necessary to bid on and secure a vast array of consulting engagements.

Growth & Expansion: Presently only active in the Silicon Valley area, prime for expansion to other territories. Company is able to deliver superior services remotely whether it’s a customer in its own backyard or across the country on the East coast.

Financing: If the price and deal structure is right.

Support & Training: The advertised net income in this ad copy makes an assumption that the Seller will remain involved with the Company post-closing. The Seller can stay on board as a technical consultant and/or sales role as needed subject to mutually beneficial terms and conditions if required for a period of 12-18 months. The largest client is under contract through November of 2018, so the thought process would be to make a soft & gradual hand off with the Seller being involved so the next re-up would be a breeze for the Buyer at that time to maximize their ROI.

Reason for Selling: Other business interests.


Listing Inquiry