IT Company Mergers & Acquisitions
Our team can purchase or sell IT companies using existing network contacts
Our team can purchase or sell IT companies using existing network contacts
• Acquisitions and sale of software development companies
• Transactions north of $10M
• Divestiture from larger companies
• Growth of software development groups
• Incorporation into larger organizations after the buyout
• Resale of the companies for larger multipliers against increased EBITDA
A computer-based training company providing technical training products to IT professionals. As a leader in Self Study, CBT, and Instructor-Led CBT, Affordable Training offered the most complete training courses available, all written by well-known experts in the field. The company partnered with an organization based in London, England, and collectively sold CBT training all over the world. Affordable Training sold courses to individuals, corporations, universities, and even entire islands. The growth of the company was 3X to 5X per year on a recurring basis, all with margins of 30% to 70% depending upon the product line.
Owner Results: Successfully exited company through the sale of Affordable Training to a corporation based in London, England. This sale was successfully conducted, exceeding the owner’s target number, without the use of venture capitalists, brokers, or an M&A firm.
MCSE-CD was the first company to develop a supplemental toolkit for Microsoft Certified Systems Engineers. The toolkits complemented industry training and experience by arming them with software to make their knowledge practical. The business model was based on revenue generation from both products and services, which resulted in a more balanced company. International relationships were formed to build the business around strategic partnerships. In the end, the MCSE-CD Toolkit became an international product spanning five countries, including Australia, England, New Zealand, and Canada.
Owner Results: Successfully exited company through the sale of the corporation and the intellectual property based on product margins of 5,000%. The margins, combined with negotiation techniques learned from the IMNET and HBOC transactions, resulted in an uncommonly high valuation.
A Disaster Recovery and Business Continuity technology firm was a recognized an industry leader in the Electronic Vaulting arena offering a product that covers more Operating Systems and databases than any other competitive product. Customers ranged from a multitude of small businesses to major institutes such as Vanderbilt University, the University of Colorado, and Jones Lang LaSalle. The company supported industries including health care, manufacturing, government, education, research, petrochemical, information technology, legal, and software development. Its focus areas were growth, market expansion, profitability, and ease-of-use. The company was built as a lifestyle business. The owner only required 4 – 6 hours a month to maintain it and considered it a virtual “ATM machine.” Growth in revenue went up by 15X using the techniques offered by Stone Peak.
Owner Results: Owner considers this business a “virtual ATM machine” and has structured it as a lifestyle business that provides recurring revenue with minimal management or oversight. The company’s profit margins are over 50% and the owner has no desire to sell given the long-standing contracts in place with large institutes.
Exit Events
Buying a Company
Sourcing Investors
Commercial Real Estate