Business Name: Sign NDA to View at https://fih.com/listing/7145908

Business Website: Sign NDA to View at https://fih.com/listing/7145908

Business Start Date: 1996

Business Location: Santa Cruz Bolivia (Headquarters) with full operation in other 3 countries (Peru, Paraguay, Chile) 

Business Price: $20,500,000 USD

Business Model: IT Services and Consulting

Industry: Cyber-Security, Data Center, Network Infrastructure, Telecom

Percentage Being Sold: 100% 

Sales (TTM): $19,972,157 USD

EBITDA: $6,195,377 USD 

Cashflow (after tax): ($549,529) 

Business Multiple: 14.29x Profit + 1.03x Revenue

Clients: 300-400 Per Year

CAC: 5-15k USD

ARPU: 30-50k USD

Summary

The business is a leading IT consulting firm with 28 years of expertise in delivering tailored technology solutions across South America. The company offers a rare opportunity to acquire a turnkey operation with a solid foundation, recurring revenue streams, and significant growth potential in a rapidly expanding market.

Business Overview

Company Background:
Founded in 1996, the company has established itself as a trusted partner for businesses and government entities seeking innovative IT solutions. Initially specializing in IT infrastructure and consulting, the company rapidly expanded its service offerings to include cutting-edge areas like cybersecurity, data center management, and telecom solutions. Over its 28-year history, the company has built a reputation for excellence, reliability, and innovation, supported by a dedicated team of professionals and a robust operational framework.

The company operates through strategically located offices in Bolivia, Peru, Chile, and Paraguay. These regional offices enable the company to provide localized support and maintain strong relationships with clients. The headquarters in Santa Cruz, Bolivia, serves as the central hub for administrative functions, project oversight, and strategic planning. Each office is equipped with skilled teams and infrastructure to manage large-scale IT projects efficiently.

Key Services:

1. IT Infrastructure Consulting and Implementation:

   • Comprehensive IT strategy development tailored to client needs.

   • Design and deployment of scalable infrastructure solutions.

   • Integration of hardware and software systems for seamless operations.

2. Cybersecurity Solutions:

   • Deployment of advanced security measures to protect data and networks.

   • Development of incident response plans and real-time threat monitoring.

   • Compliance with international security standards for critical sectors.

3. Data Center Management:

   • Design, implementation, and maintenance of data centers.

   • Virtualization, storage solutions, and disaster recovery planning.

   • Ensuring 24/7 uptime and operational efficiency for client operations.

4. Software Licensing and Integration:

   • Licensing agreements with leading software vendors.

   • Tailored software solutions to meet specific business requirements.

   • Seamless integration with existing systems to maximize ROI.

5. Network Infrastructure Deployment:

   • Implementation of enterprise-grade networking solutions.

   • Optimization of network performance and reliability.

   • Support for hybrid and cloud-based network environments.

6. Telecom Solutions:

   • Providing unified communication systems for businesses.

   • Integration of voice, video, and data services.

   • Support for large-scale telecom infrastructure projects.

Client Base: The company’s client base spans multiple sectors, including finance, retail, education, and government. The company serves 300-400 clients annually, ranging from small and medium-sized enterprises to multinational corporations. The company’s top clients include major financial institutions, large retailers, and public sector entities, reflecting its ability to handle projects of varying complexity and scale.

Client Retention and Growth: With a strong focus on customer satisfaction, the company has achieved an impressive client retention rate. Approximately 40% of clients return for additional services within two years, reflecting the quality and value of its offerings. By fostering long-term relationships, the company ensures steady revenue growth and market stability.

Competitive Advantages:

1. Established Reputation:

   • Nearly three decades of experience in the IT industry.

   • Recognized as a reliable partner for high-value projects across South America.

2. Diverse Revenue Streams:

   • Balanced portfolio of project-based, licensing, and maintenance revenues.

   • Reduces dependence on single revenue sources and enhances financial stability.

3. Strategic Partnerships:

   • Collaborations with industry leaders like Juniper, Dell, and Trend Micro.

   • Access to exclusive tools, training, and support for delivering premium solutions.

4. Highly Skilled Workforce:

   • Team of 75 professionals, including certified engineers, project managers, and consultants.

   • Continuous training programs ensure staff expertise in the latest technologies.

5. Operational Efficiency:

   • Streamlined processes and robust project management tools.

   • Ability to scale operations quickly to meet growing client demands.

Business Highlights:

• Annual revenue exceeding $19 million, with strong EBITDA margins.

• Proven scalability, allowing for easy entry into new markets and service lines.

• Established processes for operational excellence and client satisfaction.

Historical Evolution: The company’s journey began as a small IT consultancy in Bolivia, focused on helping local businesses optimize their IT infrastructure. Over the years, the company diversified its offerings, entered new geographic markets, and embraced technological advancements. Key milestones include:

• 2000: Expanded services to include data center management.

• 2005: Secured partnerships with leading global software and hardware providers.

• 2010: Opened offices in Peru and Paraguay, marking the beginning of regional expansion.

• 2018: Launched advanced cybersecurity solutions, addressing growing client concerns.

• 2023: Achieved record annual revenue of $19.97 million.

The company’s ability to adapt to changing market demands and technological advancements has been a cornerstone of its success, positioning the company as a leader in IT services and consulting in South America.

The Opportunity

Growth Potential:

• Geographic Expansion: Enter untapped South American markets or expand into North America and Europe.

• Service Diversification: Introduce cutting-edge offerings like AI-driven analytics, cloud computing, and blockchain solutions.

• Strategic Alliances: Form partnerships with global tech leaders like AWS, Google Cloud, or Microsoft to enhance service offerings.

• Recurring Revenue Models: Scale subscription-based services such as SaaS offerings and managed IT services.

Market Trends:

• Rapid digital transformation across industries in South America.

• Increased demand for cybersecurity and cloud infrastructure solutions.

• Rising investment in IT modernization by public and private sectors.

The IT services and consulting market in South America is poised for significant growth, driven by the increasing adoption of digital transformation initiatives. Companies are prioritizing investments in IT infrastructure to enhance efficiency, cybersecurity, and overall productivity. The company’s strategic positioning enables it to capture this growing demand with its comprehensive service offerings and established market presence.

Financial Highlights

The company has maintained steady revenue growth despite market fluctuations. Its diversified revenue streams and efficient cost management strategies have ensured stable EBITDA margins. Key drivers include high-value contracts, long-term client relationships, and recurring revenue from software licensing and maintenance

Key Metrics:

• Sales (TTM): $19,972,157 USD

• EBITDA: $6,195,377 USD

• Cashflow (After Tax): ($549,529)

• Valuation Multiple: 14.29x Profit + 1.03x Revenue

• Average Revenue Per User (ARPU): $30,000 - $50,000 USD

• Customer Acquisition Cost (CAC): $5,000 - $15,000 USD

Revenue Breakdown:

• Project-Based Revenue: 65%

• Recurring Licensing Fees: 25%

• Maintenance and Support Contracts: 10%
   

Historical Financial Performance:

Operations

Organizational Structure:

• Management Team: Includes General Manager, Finance Manager, HR Manager, Marketing Manager, and Financial Controller.

• IT Consultants: 40 engineers specializing in system architecture, cloud solutions, and cybersecurity.

• Sales and Customer Support: 15 employees managing client acquisition and retention.

• Administrative Staff: 15 employees handling logistics, compliance, and inventory.

Service Delivery:

• IT projects are managed using advanced tools like Microsoft PM and proprietary software.

• SaaS platforms provide clients with 24/7 access to services and analytics.

• Regional offices ensure localized support and rapid response to client needs.

Team Overview

Employees: 75 total staff, including senior IT engineers, account managers, and operational staff.
Employee Retention: High retention rate supported by competitive salaries and ongoing training programs.
Roles and Compensation: Salaries range from $12,000 to $60,000 annually depending on position and seniority.

Sale Structure

Ownership Offering: 100%
Valuation: $20,500,000 USD
Post-Sale Support: Current owner available for 6-12 months to ensure a seamless transition.

Included Assets:

• Headquarters and regional offices (valued at $2.5M - $3M USD)

• Proprietary software and IT tools

• Active contracts with clients and technology partners

• Operational infrastructure including servers, networking tools, and vehicles

About the Agent 

FIH.com is a Manhattan-based M&A advisory firm specializing in the sale of remotely-run successful digital companies (around the world) from $1M-100M in revenue, including apps, marketplaces, freemium + enterprise SaaS, ecommerce, affiliate/advertising groups, and more! We are proud to work with the very best entrepreneurs and investors, so if that’s you and you are in the market to acquire or sell a relevant business, then we encourage you to reach out for a complimentary consultation.