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Profitable Commercial It Consulting/Services Company In Greater Calgary For Sale

Greater Calgary, Alberta, Canada
Asking Price:
$1,990,000 (CAD) Furniture / Fixtures and Inventory / Stock included
Sales Revenue:
$1,500,000 (CAD)
Cash Flow:
$474,000 (CAD)

Founded in 2002, this company is a firmly established, pandemic-proof business that provides a diverse suite of value-added IT support services exclusively to commercial clients across a wide array of industries, with a focus on hospitality.

Thanks to its wide range of services, proven track record, and stellar reputation for quality and client care, the company receives an extremely high amount of referrals and repeat business (approximately 90% of revenues) in the form of contractual maintenance and support, non-contractual maintenance and support, as well as license subscriptions. As a result, the company has been consistently profitable since inception, boasting very attractive EBITDA margins of up to 33%.

Contributing further to the company’s success is a dedicated team of experienced employees, including two technicians, known to clients for their commitment to superior quality of service. To increase the team’s efficiencies, the company utilizes well-documented systems and processes to ensure strong project management skills and effective cost-management strategies.

The company's services are primarily remote, allowing for unrestricted geographic growth. Additionally, there are numerous other growth opportunities present that, coupled with its reputation and experience, provide a platform for continued growth and success.

Overall, this is a highly profitable and well-established IT services provider with a strong track record of success. With its commercial focus, long-term client relationships, diverse service offerings, experienced team, and ample growth opportunities available, this company presents an excellent investment opportunity for the right purchaser seeking to enter or expand in the IT support services market.

Property Information

Real Estate:

Lease

Lease Terms:

The property is owned by a related company, and rent is not paid by the operating company. It is assumed that a purchaser can either house the company in its current office or operate remotely.

Leasehold Rent:

$0 (CAD) per annum

Lease Rent:
$0 (CAD) per sq ft per annum
Location:

The company operates out of a central office, however can be relocated anywhere as, through Covid, the company proved that the staff and company could operate successfully while working remotely (99% of services are performed remotely).

Premises Details:

Approximately 1400 sq ft

Size in square feet:
1,400

Business Operation

Expansion Potential:

The company's services are primarily remote, allowing for unrestricted geographic growth. Additionally, there are numerous other growth opportunities present that, coupled with its reputation and experience, provide a platform for continued growth and success.

Competition / Market:

While the industry in general is known for low barriers to entry, this company has successfully created numerous competitive advantages. Firstly, the company has a deep understanding of the needs of its commercial clients, proven through exceptional service at a reasonable cost to satisfied long-term clients. Secondly, the company has a highly-skilled team of long-tenured employees, which can be difficult to maintain in the cut-throat labour force of the IT service industry. Thirdly, the company has strong project and cost management skills, with documented systems and processes in place, resulting in consistent profitability with strong margins (33% EBITDA in FY22). Finally, the company has diversified product and service offerings while leaving room to add new services to leverage the latest technology and skills available.

Furthermore, this company strives to be a value-add, one-stop-shop (all service needs) for all of their clients’ needs. While they are able to serve clients in a wide array of industries, they have a particular focus and expertise in a niche industry. The company’s and staff’s extreme focus on top-notch customer service, combined with their expertise, has enabled them to retain clients long-term (some since the company’s inception), and has in-turn generated the ability to grow their business substantially through referrals.

As a result, the company enjoys large amounts of repeat business (management estimates 90% of total revenues come in some form of repeat business); an analysis of the company’s top ten clients reveals an average lifetime value of over $1.0M. All of this supports the fact that ABC Computer Co has created significant barriers to competition for new entrants into the industry, and even against more established IT service providers.

Reasons for selling:

After nearly 22 years of ownership, the owner would like to retire and enjoy the fruits of his labour.

Trading hours:

Normal operating hours are Monday to Friday, 8:30am to 5:00pm. The company also offers on-call technical support 24/7/365 for emergency support and service.

Employees:
5
Years established:
21

Other Information

Support & training:

The owner is open to reasonable transition terms to ensure successful transition of operations and relationships.

Furniture / Fixtures value:
$12,500 (CAD) - included in the asking price
Inventory / Stock value:
$25,000 (CAD) - included in the asking price
Related Documents:
Home based:
This business can be run from home.
Relocatable:
This business can be relocated.