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Technology Consulting Firm w/International Clients



  • Price

  • Cash Flow

  • Revenue

  • Location

  • Valuation

  • Service Area
    Mostly Atlanta, but some nationwide

  • Account Receivable

  • Employees
    40 – Recruiting/Sales, Resource Manager, 2 in Billing/Payroll; about 35-40 Software & Aerospace Engineers (some W2, some 1099)

  • Intangible Assets
    Relationships, reputation, contacts


Located in Atlanta, this dynamic technology consulting firm has 40+ skilled employees in place to handle any job. This company works with local, national, and international clients.  With a specialization in placing skilled engineers on-site within a company to build custom applications and software, This company can meet the needs of small to large businesses.  Notable clients have included 3M, Intel, Gulfstream, Scientific Games, and more.  This company can meet various needs of clients serving a vast array of customers.  They have even entered the aerospace market!  The seller is also currently working on securing contracts in the defense arena that should prove to be a great growth opportunity!


This company has built a strong reputation over the past 25 years, and continues to grow.  Currently employing between 35 – 40 engineers, this business has the capacity to develop and continue nationwide projects. In addition nationwide clients, a majority of clients require service in the Atlanta area. Engineers will travel where the client needs them, including oversees, which occurs roughly 5% of the time.


Growth exists in bidding more contracts. The seller had a large infrastructure build contract in 2015 that bumped gross sales to over $7M. Seeking out more of those opportunities, as well as government contracts, will provide great income streams.


Business Highlights

  • Years in Business: 25 
  • Location and Service Area: Atlanta 
  • Services: Software development, PLM software, software configuration management, software QA/testing, telephony engineering 
  • Industries: High Tech, Aerospace, Manufacturing, Media & Information Services, Telecommunications, Healthcare, Defense 
  • Lease: Small office space is rented – employees work from home, but come into the office 2 to 3 days per week 
  • Reason for Selling: Retirement 
  • Employees: 40: Recruiting/Sales (1), Resource Manager (1), Billing/Payroll (2); about 35-40 Software & Aerospace Engineers (some W2, some 1099) 
  • Growth Opportunities: Bid more contracts 
  • Current Owner’s Responsibilities: Manages accounts, employee oversight, oversees financials.

Financial Highlights

  • List Price: $2,500,000 
  • Gross Sales:
    • 2017 - $5,123,018
    • 2016 - $5,852,783
    • 2015 - $7,238,047*
    • 2014 - $4,979,256 
  • Cash Flow:
    • 2017 - $599,534
    • 2016 - $852,863
    • 2015 - $492,578
    • 2014 - $446,262 
  • Assets Included in Purchase:
    • Equipment: Office furniture and fixtures
    • Intangible Assets: Relationships, reputation, contacts
    • Seller will retain A/R and A/P

*2015 Gross Sales were higher to due assisting a client with infrastructure building – when that was complete, ongoing service was minimal

Cash Flow Analysis

Description of Financial StatementP&L StatementTax ReturnTax ReturnTax ReturnNotes
GROSS SALES$5,123,018$5,852,783$7,238,047$4,979,256
Net Income Shown on Financial Statement$383,644$794,850$386,575$445,960
Charitable Contributions$55,581$0$0$0Seller contributions
Personal Expense$0$0$48,000$0Seller's retirement expenses
Meals & Entertainment$165$293$283$3025% personal
Compensation to Owner$92,040$52,000$52,000$0
Tax on total W2 Salaries$13,956$5,720$5,720$0
Auto Expense$1,921$0$0$0Personal Auto Expense
Telephone$746$0$0$0Owner's Personal Cell
Dental Insurance$1,308$0$0$0Owner/Family's Dental Insurance
Health Insurance$19,575$0$0$0Owner/Family's Health Insurance
Life Insurance$9,998$0$0$0Owner/Family's Life Insurance
Tithes$20,600$0$0$0Non-onward going expense
TOTAL ADDBACKS$215,890$58,013$106,003$302
Seller's Cash Flow = Total Addbacks + Net Income$599,534$852,863$492,578$446,262
Profit Margin11.69 %14.57 %6.81 %8.96 %


  • While sales were back down from an all-time high, 2016 had a 73% increase in Cash Flow


  • High tech
  • Aerospace
  • Manufacturing
  • Media & information services
  • Telecommunications
  • Healthcare
  • Defense

While capable of working in many industries, the majority of clients come from the high tech and aerospace arenas.

The seller is also working on a defense contract that should prove to be a growing revenue stream.


  • Notable clients include:
    • CSC
    • Scientific Games
    • Gulfstream
    • Intel
    • 3M
    • Toyota Boshoku
    • Ogletree Deakins
    • General Dynamics
    • Mission Systems
  • Government and aerospace projects can last for a significant period of time (3 to 7 years)
  • Most clients require work for 1 year
  • Invoices turn around every 2 weeks

Software Services

Software Development

  • Analysis, Design, Development, Testing, C#, ASP.Net, C, C++, Java/J2ee, webMethods, SAP, Oracle-EBS, EDI, XML, mobile platform development, UNIX/Linux, Windows, Oracle, SQL Server.

PLM Software

  • Product Lifecycle Management Solutions: Catia, SmarTeam, Enovia, Matrixone and Teamcenter.

Software Configuration Management

  • CM Assessment, Recommendation and Implementation of CM Tool sets, ClearCase/ClearQuest, Harvest, Serena.

Software Quality Assurance/Testing

  • Software Quality Assurance, writing of test cases and test plans, analysis and implementation of automated test tools.

Telephony Engineering

  • Asterisk VoIP v1.4-1.6. Dialogic voice, fax, and T1/E1/ISDN cards; Aculab ISDN-PRI E1/T1 telephony cards; VoIP with hardware (Dialogic and Aculab) and software SIP/H.323

Consulting Services

Product Development

  • From idea to design to proof-of-concept (POC) to production

Custom Application Development

  • Custom-built to client specifications using three-stage engagement methodology

Software Quality and Testing

  • Measure or test for compliance or effectiveness


  • Talent Acquisition
    • Recruiting and sales
  • Resource Manager
    • Onboarding
  • Billing & Payroll (2)
  • 35 – 40 Engineers
    • Mix of W2 employees and 1099 contractors
    • Average salary is $130,000
    • Software Engineers and Aerospace Engineers

Seller manages accounts and customers; ensures service requests are delivered; oversees relocation, worksite and reimbursement needs; oversees financials and runs monthly reports.

Employees that aren’t on site are capable of working from home and in the company office.

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          Multiplier          =          Price

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

Multiplier is a prescribed number between 1 and 5 determined by a 100-point, 20-question rating system used to determine the business valuation (average is 3).

The 2017 Cash Flow is $599,534. The prescribed multiplier is 4.2.

With this information, the computation result follows:

$599,534         x          4.2       =          $2,518,042


The List Price for the business is set at $2,500,000.

Growth Opportunities

  • Hire more employees
    • A buyer should consider hiring more skilled employees to take on more contract bids
    • While the figures most likely will fall into the six figures, higher paid employees capturing more contracts should still profit nicely
  • Bid more contracts
    • The seller is currently securing a contract with a defense company
    • Seeking out more contracts in many industries would help to diversify income streams

Funding Example

Purchase Price:                          $2,500,000

15%Buyer Down Payment:          $375,000

5%Seller Financing:                     $125,000

80%Bank Loan:                          $2,000,000

Seller Financing 5-year term at a rate of 4.50% equals a monthly loan payment of $2,330.

Bank Loan 7-year term at a rate of 6% equals a monthly loan payment of $29,217.

After business expenses and loan payments, a buyer with a 15% down payment of $390,000 would retain a profit of $220,964, which results in a 59% return on investment in the first year.

A lender is required to have a minimum 1.5 coverage ratio for any business loans extended. At a proposed Purchase Price of $2,500,000 with the terms listed above, the coverage ratio is 1.58. 

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:
2017 Cash Flow
Annual Debt Service: $

Buyer's Net Operating Income (NOI)

The amount of money the Buyer will retain as profit.

Cash Flow:
2017 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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