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FOR SALE
02/12/22
479
MC/DIGDEV
A digital design and development agency predominantly providing website design, development and hosting services, with a specialism in Magento, is exclusively marketed for sale by Morton Christie Business Brokers.
Revenue is derived from website design and development (c 55%), hosting services (c 30%) and the balance marketing and other services. Increasingly, projects are multi-faceted, requiring the delivery of an integrated website and subsequent digital marketing campaign. In addition to Magento and Wordpress, the business has recently added Shopify as a platform. The company has 70 clients onboard from a diverse range of industries (protecting itself from any downturn in a particular sector) and with different types of organisations from both the private and public sector. Recurring revenue as a proportion of total revenue has grown year over year and is forecast to be approaching 50% by the end of the current year.
The business is located in Edinburgh and therefore many clients are Scotland based, but they are typically managed via video calls etc and the business is therefore relocatable. The company is managed by the 2 directors (1 full-time, 1 part-time), then preferring to utilise strong relationships with skilled resource on a subcontract basis as and when required.
Strong SEO positioning allows the business to generate the majority of new clients organically or through recommendation and hence marketing expenses are low. Coupled with the remote-working business model, this feeds into a low overall cost base, allowing it to generate healthy profits, that continue to grow year over year, while remaining competitive in the market-place. The current year forecast is sales of £192k delivering an adjusted EBITDA (having accounted for replacement management costs) of c £95k.
Having run the business for a number of years, the vendor is seeking to pursue different interests, therefore concluding it is the right time to relinquish control and allow new owners to take it through its next phase of development. The vendor will provide an appropriate level of handover.
The Guide Price sought by the vendor for 100% of the shares of the company is £300k and it will be sold with a debt free, cash free Balance Sheet. The business is an attractive acquisition for trade buyers looking for a new regional presence, or to add a Magento specialism while inheriting robust recurring revenue streams. Alternatively the business is of a size that would suit a private individual or team wanting to enter the web design and digital marketing sector.
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