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BUSINESS REFERENCE : IU083 / RightBiz IU083-RELOCATABLE-£ 5,200,000-IT SECURITY SPECIALIST AND SYSTEMS INTEGRATOR WITH A PARTICULAR PRESENCE AMONGST LEADING CITY FINANCIAL INSTITUTIONS AND | | | | | | IT security specialist and Systems Integrator with a particular presence amongst leading City financial institutions and major Government Departments Ref.IU083 Location Relocatable Asking Price £ 5,200,000 | | | BUSINESS LOCATION: | Undisclosed Relocatable UNITED KINGDOM | | BUSINESS SECTOR: | Services | | TRADE TYPE: | Other | | SELLER: | Agent Sale | LEASEHOLD: | £5200000 | | | | | | | | | | | BUSINESS DETAILS: | Business profile:
Established in 1999, through organic growth and a strategic acquision one year ago this business has become one of the fastest growing and profitable IT services businesses in the UK, providing IT consultancy, systems integration, training and support. This business implements both hardware and software solutions for an enviable and prestigious Client list that includes leading City financial institutions, blue chip corporates, key Government Departments and many Local Authorities.This company provides innovative and scaleable solutions tailored to meet individual business requirements, designing robust, high performance networking solutions that don’t just cover current technical and commercial objectives, but take into account growth and expansion objectives ensuring that all expected business changes are catered for. It works with all of the leading vendors including Cisco, Microsoft and other IT industry leaders.This business is particularly renowned for its expertise and experience in Network Security and its provision of Software Solutions. As part of its portfolio of Network Security services, this business provides quality solutions for all aspects - from Access Control to Wireless Security and all categories in between including VPN’s, Anti Virus, Content Security, Quality of Service, Intrusion Detection and systems Management – all based upon 'best of breed' products from leading network security vendors. And appreciating the crucial importance of IT to every business today, this business helps, through its Software Solutions portfolio of services, to identify the right software to satisfy a business’s particular needs. Using its team of world class integrators it provides a full range of technical and consulting services including Application Integration, Database Development and Performance Tuning, e-commerce and e-business solutions, Java and J2EE Development, Portal Solutions, Web Development and XML and Web services.This business focuses heavily on the quality of its service and the experience of its technical staff, helping companies integrate information technologies into their business environment in the most cost efficient and cost effective way – identifying and implementing innovative and scaleable solutions that are a perfect match for a business’s needs and to maximize the return on investment. This focus on customer needs combined with its undoubted technical capabilities has enabled this business to establish an enviable reputation in the public and private sectors and longstanding working relationships with senior Government Departments and leading City financial institutions resulting in an enviable range of long term sustainable contracts for technical, administrative and operational IT support. As a consequence this business is in heavy demand and can demonstrate sustained profitability moving forward. With turnover for the current financial year set to exceed £3.5m generating a pre-tax net operating profit of slightly less that £1m, this business represents an excellent acquisition opportunity for any one in this sector looking to establish a firm presence within this sector and particularly amongst City financial institutions and leading Government Departments.
Key strengths:This is a very well established business with a very high profile within the City - with on-going contracts with some of the best known brokerage, trading and hedge funds - and within the Public Sector, with leading Government Departments and approximately 40 Local Authorities. It is particularly renowned as a specialist in Security. As a Premier partner with Cisco and with close working relationships with Microsoft and other market leading vendors within the IT industry, this business has a wealth of experience and knowledge of all software solutions and the major network operating and security systems, particularly in relation to their possible application within City financial institutions and leading Government Departments. These alliances require the highest levels of skill and expertise, all of which is deployed to best effect on behalf of customers. Operating at the very highest levels and having worked on some of the most high profile projects particularly within Government Departments, this business provides all the planning, consultancy and project management necessary for successful system integrations, IT network migrations and deployments.This business has secured an enviable portfolio of contracts generating individual monthly support income of tens of thousands and in one case hundreds of thousands of pounds per month. Some Central Government arrangements involve 5 – 6 year period contracts, some of which are at the very beginning of their term. As a result this is a very profitable business with good levels of predictable income stretching for some time to come.Key opportunities:This will be a very successful and profitable business over the next few years simply by meeting the business’s existing contractual obligations, farming the very high profile existing customer base and converting opportunities that will undoubtedly appear therein. There are however, many excellent avenues for growth outside the existing base. Operating without any structured marketing strategy, with only one Executive in a customer facing role, very little advertising and not even a telesales presence there is significant scope to grow within the appropriate market sectors. Conservative estimates suggest that this business could grow from its current level of £3.5m turnover to exceed £10m within the next few years.Aside from its current areas of expertise there is no doubt that this business could also extend in to the area of Cabling and Network services leveraging the excellent reputation it has built up for its technical expertise and high levels of customer service amongst its existing customer base.
Premises:The business operates from very well suited premises – with an office in the North West and two in the south of England including the City of London. In the North West, where particular responsibility lies for infrastructure and support the business operates from 600 square feet of serviced offices with excellent motorway links throughout the North of England via the M6 and M62 motorways. At a cost of £1,000 per month all inclusive, the offices are on a short term let basis with only three months notice required of termination.The remainder of the operation is run from the southern base of the business operating from 6,000 square feet of offices and ideally located for easy access to the City. Acquired on a 5 year lease in 2004, the rent is £80,000 per annum.
Advertising and marketing:The business primarily uses the technique of reference selling in order to acquire new customers, leveraging its Client list and projects that have been successfully completed in order to open doors to new customers within the same sector. Not surprisingly for an IT business listing as one of its specialisms web development and web services, the business has a very well designed and informative website that performs well within all the major search engines for all appropriate search topics.This business benefits most however from the most cost effective form of marketing, recommendations, bearing strong testimony to the excellent reputation the business enjoys, and the extent to which its name is known throughout the industry and particularly within the City and leading Government Departments
Financial profile:
The business is offered for sale as a going concern. All financial discussions will take place directly between the vendor and all interested parties under the auspices of Turner Butler. The business is financially stable, having got to its not inconsiderable current size without recourse to funding, with high gross and high net profits and significant predictable incomes moving forward.Turnover for the current financial year is set to exceed £3.5m generating a pre-tax net operating profit of approximately £960,000. The Asking price of £5.2m is for the sale of the shares in the business.
Employees: The most important resource of any business, and particularly a service business of this nature, is its people. This business employs a team of approximately 40 dedicated and skilled staff, almost half of which work in operational, support and development roles – supported as required by a further twelve technical staff operating on a contract basis. There is a very strong and capable management team covering all the usual functions required of a business of this size, independent of the Owner who operates in a Key Account/Relationship management and nominal Managing Directorial role.
Support and training The owner will provide full business familiarisation, training and handover, acknowledging that new Owners may require an extended period of handover to ensure a smooth transfer of the business. The current Owner would also consider an on-going role within an enlarged organization subject to negotiation.
Reason for sale:Having developed the business to its current level the Owner feels the time is right to pass the business on to new Owners to build on the excellent foundations already laid. | | | | | CONTACT: | TURNER BUTLER | | TELEPHONE: | 01895 25 6000 | | REFERENCE: | IU083 / RightBiz | | ENQUIRIES: | | | | | | | | | | | | | | | | | | | | |
