• Landline:512-347-2000
  • Email:stafford@benchmarkcorporate.com

Software Development Company with Major Telecom Company Partnerships

  • Posted on
  • 15
Specifications
EBITDA$901,000
Revenue$1,559,000
Client CodePRO1534
EBITDA Range 750K-1M
Revenue Range 1M-5M
Sector Professional-Services-and-Consultancy
Region Southwest-US
Deal Structure Full-Sale
HeadquartersAllen, TX
Description

Included in this offering a software development company that specializes in computer telephony integration products. The company partners with major telecom companies and private labels its software with its partner’s name so that these companies can then market and sell these products as their own.

Key aspects
· Operating margins close to or over 40% in the past 3 years
· Very low overhead and capital expenditure requirement
· Strong relationship with a major telecom company that has captured 16% of the small to medium-sized business market
· Partnership with a surveillance technology company to provide firmware will increase Adjusted EBITDA by $2 million to $4 million annually

Opportunities
· Hire additional staff to take advantage of new partnership opportunities
· Company is in negotiations with a new telecom partner to provide telephony software for a new premise-based telephony server; this relationship could generate additional $500 thousand in Adjusted EBITDA per year

Headquartered
Allen, Texas

Current markets
The company, via its partnerships, serves small to medium-sized businesses worldwide. Enterprises that have between 3 and 500 phones are potential customers for the company´s telephony platform.

Real estate
The company leases 1,200 sq. ft. of space in an office building located in Allen, Texas from an unrelated party.

Shareholder/owner objectives
The shareholder is approaching retirement age and would like to sell the company in order to find additional leisure time. He is willing to stay with the company during a transition period, as needed.

Year end
12/31/2017
Internal
$’000
12/31/2016
Internal
$’000
12/31/2015
Internal
$’000
12/31/2014
Internal
$’000
Revenue 1,559 1,761 1,704 1,601
Gross Profit 1,549 1,669 1,697 1,564
Adj. EBITDA* 901 1,019 1,095 1,080

* Profit before interest, tax, depreciation and amortization (non-cash items)[/cs_table]