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FOR SALE
12/07/21
158
SMSB/MAGE
This business is an ecommerce and web development business, with particular expertise on the Magento platform. Core services include providing Magento ecommerce solutions, Wordpress & MODx development and its particular niche is the migration and integration of ecommerce sites with proprietary ERP systems.
Its clients tend to be large blue chip corporates that typically operate legacy ERP platforms hosted on IBM iSeries / AS400 hardware. The company owns a unique middleware systems integration tool that allows the legacy ERP platforms to integrate with online platforms. The result is that the business has successfully developed a robust niche, with over 50% of revenue associated with recurring hosting, support and maintenance contracts for these platforms. The balance of the revenue is generated from more generic corporate website hosting, support and SEO activities (again recurring) and then ad hoc website development project work.
Operating from a home office in Berkshire, the vendor works in the business full-time and is supported by an employed programmer and administrative assistance and a number of subcontractors with the appropriate skillsets.
While Covid had a small effect on revenues, the business has exhibited stable revenues over a number of years, a function of the degree of ‘sticky’ recurring revenue plus a fixed amount of website development that can be accommodated by the small team. The business typically generates revenues of £240k to £250k and after adjusting for an appropriate cost of management, delivers an adjusted EBITDA of c £60k to £70k.
The guide price for 100% shares of the Company is £225,000 to include a debt free cash free balance sheet with a net asset value expected to be c £10k. The vendor is flexible over handover arrangements and will support all reasonable requests.
The business is being marketed by www.sellmysmallbusiness.co.uk and enquiries should be directed to them via a request for further details. Please do not attempt to contact the vendor direct.
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