Telecommunication, ISP/MSP, Cloud Services B2B Co.

Not Disclosed, TN

Asking Price: Annual Revenue:
$1,950,000 $1,252,358

Technology: Business Services (B2B)

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RE: Telecommunication, ISP/MSP, Cloud Services B2B Co. Broker: Sundeep Gill
Owner Financing is Available!

Quick Facts

Asking Price: $1,950,000
Annual Revenue: $1,252,358
Net Profit: Not Disclosed
Cash Flow: $495,825
Total Debt: Not Disclosed
FF&E: Not Disclosed
Real Estate: Not Disclosed
Year Established: Mid 1990s
Employees: 6
BBN Listing #: 812626891
Broker Reference #: s080519g

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Business Overview:

94% Monthly Recurring Revenue at 59% margins.
Growing at 14% per year.

2018 Revenue: $1,122,999
2018 EBITDA: $341,420

2019 Projected Revenue: $1,252,358
2019 Projected EBITDA: $495,825

The price includes $267,000 of equipment.

The company was established in the mid 90’s. The company is family-owned and operates out of company-owned premises. Being under the same management for all its existence, this business has thrived in a rapidly changing technological environment. The company has endured stiff competition, changing industry standards and technology and has gained the experience in technology and customer services to deliver a technological edge of a large business with the wallet of a small business to all clients.

This company delivers reliable telecommunications services for data, voice, and cloud while reducing costs of operation and at the same time offering the benefits of expert management of customer IT assets. The company owns and operates a fiber optic and fixed wireless broadband network. The company has deep reseller and wholesale relationships with large telecommunications companies.

The company offers:
Connectivity: fiber-based connections, technical support, nationwide connections.
Phone: Hosted PBX, local and long-distance phone service, VoIP fax lines, UCAAS, Internet service, private WAN services, cloud-based phone systems.
Cloud/IT: virtual desktops/apps, work from any device/location, custom business solutions, IT maintenance and support.

The company services 220+ clients; over 2,500 end-users.

Data services offered by the company accounts for 36% of the revenue, voice services contribute another 36% of the revenue and 28% of the revenue comes from Cloud services which are relevantly new.

The company has key strategic partnerships which make the company even more lucrative

Key Highlights / Competitiveness

- All services are subscription-based on auto-renewal contracts. The company enjoys very high customer retention with 94% of all revenues being recurring.
- The company has low single customer loss risk, with the largest customer bringing in in only 9% of revenue.
- The company hosts its own cloud services and voice services in its own small data center. This makes the cloud services and voice services higher margin than a company that just resells these services. It would be an ideal addition to a managed service company that wishes to enter the facilities-based cloud and voice/telco business.
- Most business comes from direct client referrals.
- The company enjoys profit margins of 59% of sales.
- The cost of goods sold (COGS) is declining dramatically due to various strategic implementations put in place.
- Customer churn is very rare. Most customers are with the company for decades.

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Property Features and Assets:

The owner has building in TN that serves as the company headquarters. It hosts the fiber terminations, and a small data center for cloud services. The new owner can lease the facility from the current owner for $2,000 per month or can buy the asset for the market value which is about $220,000.

Reason for Selling:

The owner would like to pursue other interests.

Additional Details:

  • The property is owned.
  • The owner is willing to train/assist the new owner.
  • This is not a homebased business opportunity.
  • This is not a franchise resale opportunity.

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