Managed IT Services Provider – Virtual business with diverse revenue streams and client base sold to individual buyer
Location
Western Suburbs of BostonBusiness Broker
Molly HansonSituation
The seller contacted BayState Business Brokers to broker the sale of his managed IT services provider business so he could launch a business in a different sector of the industry.
BayState Business Brokers’ Approach
BayState Business Broker Molly Hanson quarterbacked the effort to market the business and attract both individual and strategic buyers. The business was well positioned with multiple revenue streams including managed services, IT consulting services and product sales. Built on a solid client base of accounting and law firms, the business also served the biotech sector which presented significant growth opportunities. The business operated virtually, which attracted buyers outside its immediate geography.
Results
With multiple offers, the seller and Molly Hanson negotiated a deal with an individual buyer. This buyer, an IT professional, was the seller’s preference as he sought a buyer who would resonate with his staff. As the deal was being finalized, a key employee left the firm. This material adverse change meant bank financing was no longer available. Business broker Molly Hanson jumped in quickly, working with the seller, buyer and attorneys to restructure the deal. New terms were negotiated, and the seller accepted a combination of cash at closing plus seller financing terms, including two claw backs to close the deal. Despite the turn of events, both parties achieved their initial goals: the out-of-state buyer now owned his own managed IT services firm and the seller launched his new business.
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