Remote IT Support Services Company
Asking Price: $975,000
Annual Revenue: $1,180,000
Annual Profit (SDE): $350,800
Business Model: Managed IT Services (MSP) – Remote Support
Industry: Technology / B2B Services
Client Type: Small-to-Midsize Businesses (SMBs), 10–50 Employees
Geography: Primarily U.S., Some Canada and U.K.
Executive Overview
This deal involves a remote IT support services provider with over 35 SMB clients on long-term recurring contracts for help desk, cybersecurity, cloud services, and endpoint management. The company generates $1.18M in annual revenue with $350,800 in SDE, resulting in a 2.78x earnings multiple against the $975,000 asking price.
The business operates 100% remotely with a distributed team of Tier 1 and Tier 2 technicians and a full-time operations manager. Unlike traditional managed service providers (MSPs) that require on-site support or local infrastructure, this company is platform-native and delivers all services via remote access, making it both location-agnostic and highly scalable.
For buyers interested in B2B recurring revenue, technical service delivery, or portfolio synergies in tech-enabled service businesses, this acquisition presents a plug-and-play opportunity with SOPs, client contracts, and MRR-driven stability.
Deal Structure and Terms
Sale Type: Asset Sale
Asking Price: $975,000
Annual Revenue: $1,180,000
SDE: $350,800
Profit Margin: ~29.7%
Multiple: 2.78x
Clients: 35 active retainer clients; contracts 12–36 months in term
Included Assets: SOPs, client contracts, domain, ticketing system, client knowledge base, team infrastructure
Team: 9 total – 6 techs (contract), 1 full-time ops manager, 1 client success manager, 1 part-time bookkeeper
Owner Time Commitment: 10 hours/week
Transition Support: 60 days post-close; up to 50 hours available
Financing: Seller open to 20% seller note with proper vetting
Services Breakdown
This is a true MSP (Managed Services Provider) model business. The company sells:
Help Desk Support (24/7)
Cloud Integration & Management (Microsoft 365, GSuite, AWS)
Endpoint Monitoring and Patching
Antivirus and Threat Detection (Bitdefender, SentinelOne)
Onboarding/Offboarding Automation
Network Audits & Infrastructure Health Reporting
Compliance Packages (HIPAA, PCI)
Client Base:
35 businesses
Primarily in professional services: legal, insurance, healthcare, digital marketing, logistics
Average headcount per client: 20–35
Client concentration: Largest client = 9% of revenue
Geography: 90% U.S. based, 10% Canada & U.K.
Most clients use the services on a full-retainer basis. Some occasional project revenue exists (~$70K in 2023) for migrations, server rebuilds, or onboarding new firms.
Financial Breakdown
Revenue Channels:
MRR: ~$92,500/month
Project Work: ~$5,800/month average
Total TTM Revenue: $1.18M
SDE: $350,800
Expenses Include:
Labor: $410,000/year (contractor techs and two salaried team members)
Software/Tool Stack: $26,000/year
Sales/CRM: $4,800/year
Ads/Marketing: ~$9,000/year (mainly Google Ads and Clutch.co sponsorship)
Miscellaneous: $3,400/year
Owner salary added back: $70,000/year
All financials are supported by QuickBooks Online reports, client billing exports, and platform documentation. The revenue is well-documented, with every client under a signed service-level agreement (SLA).
Client LTV: $34,200
Churn Rate: 6.5% annually
Customer Acquisition Cost (CAC): ~$1,900
New Client Sales Cycle: ~21 days from first call to signed contract
Operational Details
The business runs fully remote, with tech support tickets handled via a centralized help desk system. Ticket priority, response time, and escalation SOPs are standardized.
Organizational Structure:
Owner: Oversight, strategy, hiring, and large client renewal
Ops Manager: Handles daily scheduling, escalations, team meetings
Client Success Manager: Quarterly check-ins, expansion proposals
Tier 1 Techs (4): Handle most tickets and endpoint patches
Tier 2 Techs (2): Handle escalated tickets and audits
Bookkeeper: Handles invoices, payroll, and billing follow-ups
Tech Stack Used:
ConnectWise Control & Automate
NinjaRMM
Microsoft 365 Admin
Slack (internal comms)
Jira (project tracking)
ITGlue (documentation)
HubSpot (CRM)
The current team is stable, with most contractors having worked with the company for over 18 months. Clients are assigned account managers and escalation paths to ensure response SLAs are met.
Transition Support
The seller will provide a full 60-day transition plan that includes:
1-on-1 introductions to all clients with customized handoff scripts
Weekly ops team calls with new owner included
Access to hiring SOPs, job descriptions, training playbooks
Account-level insight into tool usage and automation stack
Guide for integrating new clients and renewals
Admin support in transferring vendor contracts and billing systems
The seller is open to an extended transition under a consulting agreement (up to 6 months) for strategic support or continued introductions in new business development.
Growth Opportunities
This MSP business is operationally sound but has been growth-limited by the owner’s desire for lifestyle balance. The following levers are untapped or underutilized:
1. Sales Team or SDR Buildout:
Currently, all growth is inbound or referral-based. Hiring an outbound SDR or forming channel partnerships could add 3–5 clients/month at current capacity.
2. Cybersecurity Package Upsells:
While AV and endpoint management are included, clients are asking for SIEM, penetration testing, and advanced audit compliance. A new high-tier service package could lift ARPU by 20–30%.
3. Strategic Niche Focus:
Currently generalist. Focusing marketing and service packages toward HIPAA-compliant healthcare or SOC 2 SaaS startups would create a stronger brand identity and SEO niche.
4. Offshore Tier 1 Support Team:
Margins could expand with an offshore Tier 1 team in Latin America or Eastern Europe. SOPs already exist to implement this if desired.
5. White-Labeling for Dev Shops or Agencies:
Web development and digital agencies often need backend IT and server support. Packaging a white-label MSP solution could create volume without full onboarding costs.
Risk Factors
1. Key Client/Tech Risk:
While client concentration is low, two key techs handle critical infrastructure. Buyers should ensure their contracts, NDAs, and replacements are in place.
2. Security Liability:
As an MSP, liability for cyber breaches can be significant. Buyer must review contracts for limitation of liability and carry cyber insurance.
3. Escalation Complexity:
While Tier 2 handles complex tickets, lacking in-house server or firewall architecture talent could become a gap if one tech leaves.
4. SLA Breach Risk:
Some clients have strict SLAs (e.g., <1-hour response time). If onboarding additional clients without scaling headcount, quality could decline.
5. Owner as Rainmaker:
Although not involved in daily ops, the seller closes larger clients personally. A buyer must replicate this with sales hires or train up the CSM team.
Buyer Suitability
This business is ideal for:
MSP Roll-Up Firms: Seeking a remote-first, scalable asset with clean MRR
IT Professionals: With background in support desk, cloud services, or security
Tech Entrepreneurs: Looking to acquire stable cash flow and scale via outbound
Vertical Operators: With experience in law, healthcare, or finance who want to sell bundled MSP services
Not ideal for passive investors unless an experienced general manager is added.
Deal Structure Options
Several structure pathways are viable:
80/20 Split: $780K at close, $195K over 12 months tied to client retention
Holdback: 10% of price released after 3 months of <10% client churn
Earnout: $250K paid over 6 months contingent on keeping 90% of MRR
Advisory Agreement: Seller retained for $5,000/month for 3 months post-close
SBA Financing: Eligible due to SDE and clean financials; buyer could use 7(a) loan with 10% down, 10-year amortization, and 9–10% interest
Final Assessment
This is a stable, well-managed remote MSP delivering $350K+ in annual cash flow and poised for growth with minimal CapEx. The systems, clients, and staff are in place. With the right buyer adding sales, niche branding, or new product layers, this business could hit $500K+ in profit within 18 months.
Acquisition Profile:
Revenue Quality: 9/10
Team Structure: 8.5/10
Churn Risk: 6.5/10
Growth Upside: 8.5/10
Security/Tech Maturity: 7/10
Deal Terms Flexibility: 8/10
Overall Strategic Value: High for operators with experience in IT, service ops, or roll-up execution
