🧠 A “Non-Sexy” Tech Play with Surprisingly Strong Fundamentals
In a world obsessed with AI, crypto, and SaaS multiples, one tech services firm is proving there’s still gold in infrastructure. This isn’t a unicorn—it’s a highly profitable, recurring-revenue machine flying just under the radar.
Insiders say the company is fielding acquisition interest under NDA, and while no SIM has been released, what’s known suggests a sticky, compliant, and cash-flowing B2B operator serving regulated industries.
“This isn’t about hype. This is about recurring cash, loyal clients, and operational resilience.”
🔧 What They Do (And Why It’s Valuable)
Forget building the next app. This company runs backend services critical to their clients’ existence. Offerings reportedly include:
- Managed IT and Helpdesk for SMEs (25–250 employees)
- Cybersecurity and compliance (HIPAA, FINRA, PCI-DSS)
- Cloud migrations and hybrid architecture
- Infrastructure deployment (VPNs, servers, endpoints)
- Disaster recovery and business continuity planning
- IT audits and penetration testing
Not flashy—but absolutely essential. Especially as compliance complexity rises across industries.
💵 The Numbers (Unofficial)
| Annual Revenue | $4.5M – $6M |
| Adjusted EBITDA | $1.1M – $1.5M |
| Recurring Revenue | 60–70% of topline |
| Client Retention Rate | 90%+ |
| Contract Length | 12–36 months, auto-renewing |
| Staff | 20–30 technical FTEs |
| Owner Role | Strategic, not operational |
🧭 Why It Might Be for Sale
- 👴 Founder Planning: Potential retirement or equity rollover scenario
- 📈 Favorable Multiples: 6–8x+ EBITDA for compliance-led tech services
- 🏗️ Roll-Up Potential: Ideal beachhead for consolidators
“Rare to find recurring revenue at this scale in a non-rolled-up firm.”
🧱 The Moat: Why Clients Stay
- Compliance = Stickiness: HIPAA, FINRA, PCI—switching vendors is costly and risky
- Contractual Defensibility: 12–36 month contracts with auto-renewals and early exit penalties
- Mission-Critical Ops: Downtime = liability. Clients can’t afford it.
📈 Growth Levers
- 🚀 Add Sales Team: Founder-led BD is a cap; new reps could unlock new regions
- 🌍 Expand Geography: Underserved metros = quick wins
- 🔐 Upsell Cyber Services: Many clients only using part of the stack
- 🧩 Roll-Up Strategy: Bolt on sub-$1M firms with similar clientele
💰 Valuation Range (Based on Market Chatter)
- Financial Buyers: 5x–6x EBITDA
- Strategic Acquirers: 6x–8x EBITDA
- Platform PE Buyers: Up to 9x with founder rollover
Valuation Range: $6M – $12M+ depending on structure
🚩 Risk Checklist
- 🔎 Client Concentration: Any 1–2 clients driving >20% revenue?
- 🧠 Key Person Risk: Any ops leader without backup or SOPs?
- 📊 Legacy Tech: Outdated systems or manual processes?
- ⚖️ Regulatory Exposure: Any recent audit issues or gaps?
🎯 Buyer Types That Should Be Looking
- 🧍♂️ Independent Buyers: Searchers & SBA-financed entrepreneurs
- 🏢 MSP Platforms: Seeking high-quality bolt-ons or regional entry
- 🔐 Cybersecurity Firms: Strategic upsell gateway into compliance-heavy clients
- 💼 PE Firms: Looking for a tech-enabled, service-based cash engine
📌 Final Word: A Durable Tech Business, Hiding in Plain Sight
Predictable revenue. Long-term contracts. Regulated industries. Founder stepping back.
This is one of those “it never hit the market” deals you hear about after it’s gone.
🚨 Want in before the SIM hits the street? Now’s the time to raise your hand.
