Specialty IT VAR + Services $1.7M AEBITDA & Growing
Listing Details
- Down Payment: --
- Sales: $10,954,327
- EBITDA: $1,745,702
- Inventory: $100,000
- Furniture, Fixtures, and Equipment: $80,000
- Employees: 30
- Year Established: 1984
- Reason for Selling: Owner retirement.
Business Description
A profitable 35-year specialty IT Value-Added Reseller and services provider supporting mission-critical operations across public-sector agencies and enterprise customers. The business delivers specialized IT hardware, systems integration, and recurring field services under multi-year master service agreements.
The company operates as a top-tier authorized channel partner with major OEMs and has recently been awarded a transformative statewide preferred-vendor contract that materially expands the addressable market. Growth is being driven by a newly awarded multi-agency government contract and a shift from product-centric to recurring service revenue.
Key Highlights:
- 35 years operating history with consistent profitability through market cycles
- ~180 active customer accounts in the most recent year; highly diversified (no single customer >15% of normalized revenue)
- ~75% of services revenue is recurring under multi-year master service agreements with annual price escalators
- Dominant public-sector customer base — long procurement cycles create barriers to entry and drive stickiness
- Top-tier authorized partner status with major hardware OEMs — difficult to replicate
- Lean operating structure; <0.01% historical bad debt; experienced technical and operational team
- Debt-free S-Corporation; 100% equity available for sale
Growth Catalysts (Not Reflected in Trailing Earnings):
- Transformative statewide preferred-vendor contract award — mandatory procurement vehicle for state-agency buyers
- Two large recurring service contracts recently signed (multi-million, 5-year terms) with annual escalators
- Services mix shift from ~10% (2022) to 26%+ (2026 YTD) supports continued margin expansion
- Multiple refresh-cycle pipelines — customers entering 4-5 year hardware refresh windows 2026-2030
- Auction; valued on sum of parts of Products and Services EBITDA, or a forward looking DCF on future growth.
- We are accepting IOI and LOI's on a rolling basis with a 10/30/26 deadline.
Confidentiality: Due to the specialized nature of this industry, vendor authorizations, customer identities, specific contract counterparties, geographic location, and the specific industry sub-segment will be disclosed only under mutual NDA.