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IT Staffing and Placement with H1B



  • Cash Flow

  • Price

  • Revenue

  • Equipment

  • Location
    Central Illinois

  • Service Area
    Employing individuals in 24 states

  • Employees
    Sales (3), Recruiters (6), HR (1), Bookkeeping (2), Networking (1 PT)

  • Lease
    2,600 sq. ft.: Private offices (3), conference room, kitchen, server room, over sized cubes (13); the building is available for continued lease or potentially for sale outside the sale of the business

  • Intangible Assets
    Wide service area, few competitors in the area, long-term client relationships, excellent network for finding talent

Since 2012, this company has been providing knowledgeable and professional staff for IT staff and software development departments in 24 states across the US.  All H1B visa holders working for this company are also sponsored by this company.  With a bill rate of $63, there is an average gross margin of $15.  This successful placement company earned over $31MM in 2018 alone!   Working with a diverse client base, employees work in areas such as health care, hospitality, government, and retail.  Currently working with over 300 individuals, this in-demand service is managed from Central Illinois.  

Contracted placements are typically over one year or longer and clients often request 5-10 placements at a time.  Employees relocate to the business location and fully integrate into the technology team on site.  This business also works with H1B visa recipients to place highly-trained individuals into U.S. companies.  Enticing employees to temporary contracted positions, this business offers health, dental, vision, and life insurance benefits.  

Operating from a building that is available for continued lease, it may also potentially be available for sale outside the sale of the business.  The current owner is fully involved in the day-to-day operations, but the company runs well without daily oversight.  


Business Highlights

  • Year Established:  2012
  • Location:  Central Illinois
  • Service Area: Employing individuals in 24 states
  • Clients: Private and public sectors: Retail, healthcare, government, hospitality, and much more!
  • Services: Long-term IT staffing
  • Building: 2,600 sq. ft.: Private offices (3), conference room, kitchen, server room, oversized cubes (13); the building is available for continued lease or potentially for sale outside the sale of the business
  • Reason for Selling: The business is successful, and the owner would like to shift gears
  • Employees: Sales (3), Recruiters (6), HR (1), Bookkeeping (2), Networking (1 PT)
  • Hours: M-F 8-5
  • Seller Training Period: 6 months 
  • Growth Opportunities: Increase recruiting efforts, build placement contracts, increase service area
  • Current Owner’s Responsibilities: Oversight

Financial Highlights

  • List Price: $11,300,000
  •  Gross Sales:
    • 2018: $31,006,044
    • 2017: $23,169,790
    •  2016: $23,518,850
    • 2015: $15,409,854
  • Cash Flow:
    • 2018: 2,507,436
    • 2017: $2,237,664
    •  2016: $1,219,566


  • Assets Included in Purchase*
    • Intangible Assets: Wide service area, few competitors in the area, long-term client relationships, excellent network for finding talent

*amounts may vary

Cash Flow Analysis

Description of Financial StatementP&L StatementP&L StatementP&L StatementP&L StatementNotes
GROSS SALES$31,006,044$23,169,790$23,518,850$15,409,854
Net Income Shown on Financial Statement$2,248,282$1,929,296$1,062,696$2,227,105
Compensation to Owner$100,000$100,003$67,502$0Owner
Other unrelated Salaries$90,003$90,003$41,250$0Owner's wife
11% Tax on total W2 Salaries$20,901$20,901$11,963$0
Meals & Entertainment$0$0$1,300$1,196
Cell Phone$1,200$1,200$1,200$1,200$100/month
Travel$20,000$20,000$20,000$20,000$20,000/year personal
Owner's Insurance$12,000$12,000$12,000$12,000$1,000/month
TOTAL ADDBACKS$259,151$308,368$156,870$51,713
Seller's Cash Flow = Total Addbacks + Net Income$2,507,433$2,237,664$1,219,566$2,278,818
Profit Margin8.09 %9.66 %5.19 %14.79 %
  • Continued sales growth year over year!

Typical Clients and Services


  • Private and public sectors
    • Retail
    • Health care
    • Government
    • Hospitality



  • Long-term IT staffing


Specific information regarding clients is available upon the receipt of a signed Non-Disclosure Agreement.


  • Sales (3)
  • Recruiters (6)
  • HR (1)
  • Bookkeeping (2)
  • Networking (1 PT)


Typical Employees:

  • Educated professionals
  • Recent graduates
  • H1B visa holders

Growth Opportunities

  • Increase recruiting efforts 
  • Build placement contacts 
  • Increase service area

Valuation Details

The Firm Business Brokerage used a cash flow valuation methodology to determine the purchase price of the business. 

The formula used is as follows:

Cash Flow       x          Prescribed Multiple     =          Fair Market Value

Cash flow is the sum of business net income plus any owner perks and any non-onward going expenses.

A multiple is prescribed by a 20 question, 100-point parameter ranking system that is used to analyze the current business health. Each question is based on a scale from 1 to 5: 1 being low, 2 below average, 3 average, 4 above average, 5 high. The average of the responses sum is the business’ prescribed multiple.

For this business, 2018 cash flow was used with a prescribed multiple is 4.5.  With this information, the computation is as follows:

$2,507,436      x          4.5       =          $11,283,462

The fair market value found above positions the business list price at $11,300,000.

Funding Example

Purchase Price:                             $11,300,000

15%Buyer Down Payment:          $1,695,000

15%Seller Financing:                   $1,695,000

70%Bank Loan:                             $7,910,000

Seller financing 7-year term at a rate of 4.50% equals a monthly loan payment of $23,561.

Bank loan 10-year term at a rate of 5.50% equals a monthly loan payment of $85,844.

After business expenses and loan payments, a buyer with a 15% down payment of $1,695,000 would retain a profit of $1,356,695 which results in a 80.04% return on investment in the first year.

A lender is required to have a minimum 2.03 coverage ratio for any business loans extended. At a proposed purchase price of $11,300,000 with the terms listed above, the coverage ratio is 2.03. 

Please note that the decision of whether to extend a loan on any sale belongs to the bank, and this document does not guarantee specific terms or verify that financing is available. 

Purchase Price:



Bank Loan Needed: $


Funding Details


Offer Price: $

% Buyer Cash Down at Closing: $

% Seller Carry Back via Promissory Note: $

year term at a rate of %

% of Purchase Price secured by Buyer and Seller

Total Bank Loan Need: $

% of Purchase Price

Desired Loan Type:

Desired Bank Terms: year term at a rate of %

Total Business Assets, Inventory, and A/R: $

Total Undercollateralized Loan: $

Loan Payments

Monthly Payment to Bank: $
Yearly Payment to Bank: $
Monthly Payment to Seller: $
Yearly Payment to Seller: $
Total Monthly Debt Service: $
Total Yearly Debt Service: $


Fixed Charge Coverage Ratio

The bank will require a minimum ratio of 1.5 to be lendable.

Cash Flow:
2018 cash flow
Annual Debt Service: $

Buyer's Net Operating Income (NOI)

The amount of money the Buyer will retain as profit.

Cash Flow:
2018 cash flow
Annual Debt Service: -$

Buyer's Return on Investment (ROI)

The rate of return on the Buyer's down payment.

Down Payment: $
ROI: %


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210 N 78th St. 2nd Floor
Omaha, NE 68114

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The Firm Business Brokerage is not a real estate brokerage and therefore the staff will not handle any aspect of the lease, sale or purchase of real estate.