Sold 'Q3 2017!
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This software Company provides scalability solutions that enable companies to deploy redundant and highly-available solutions that do not require the purchase of additional hardware. Their load balancing software creates availability and scalability for web and network-based applications for business operations and provide geographic continuity based solutions that protect against local catastrophes. The Company addresses their clients' business continuity and scalability needs and goals and simplifies them with software solutions that enable more efficient use of existing infrastructure. They continually leverage existing deployments to better utilize the infrastructure that is already in place. They accomplish this by using agent technology that provides real-time feedback regarding utilization and use this information to distribute load across existing capacity. 100% of the revenue is recurring at this time, as there have not been any outbound sales initiatives in 2015 or 2016 to speak of. The major downside of the Company is there is a significant client concentration risk, with 84% of the revenue tied to a single Fortune 100 Client. Hence any future deal structure will be tied to future performance with some floor set by the Buyer & Seller but also an upside-based payout based on the gross sales of the Company after Closing. Ideally something like $250k cash down, $5k minimum for 60 months OR a 20.0% royalty on gross sales revenue - whatever is GREATER. Ideally the business will thrive under new management that focuses on additional sales & the Sellers will secure their target purchase price. They believe in the stability and robustness of the product, it just needs to get in the hands of an aggressive Buyer. We are capping the royalty payout at $1MM so it would not continue as an oppressive burden for the remainder of the 60 months if the gross sales bogey helped us hit $1MM in consideration exchanged before the 60th month. NDA is required for comprehensive package on file with Ace Business Brokers.
Facilities: Portable home based software business that is relocatable nationwide. Even worldwide for that matter. (Home Based)
Competition: There are other competitors that provide similar services at a much higher price point. This is an enterprise grade platform at mid-market pricing.
Growth & Expansion: Sales have teetered out due to the fact that the co-owner who specializes in the sales development and outreach has not been engaged for the past couple years. They have been riding out their established client base for awhile now.
Financing: $250k Cash Down – TBA on Balance Depending on Buyer.
Support & Training: As needed.
Reason for Selling: Partnership is divided on future of the Company.
Home-Based: This business is Home-Based
Ace Business Brokers NDA & Buyer Profile
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