While hard working Americans are being thrown out of their jobs in large numbers, “body shop” companies run by foreigners are taking in millions in revenues.
2018 Q1 M&A Report – We learned about the following deals happened recently in the IT Companies M&A market:
NY Company – 22 consultants on billing. 13 H-1Bs. All I-140’s for H-1Bs are approved. Infosys/Pontoon primary vendor. Few Direct clients. Total yearly Revenue around $3,600,000. Yearly Gross Margin around $725,000. Sold in full with 6 months guarantee for 90% of the Gross Margin.
OH Company – 29 consultants on billing. Combination of H-1Bs and OPTs. Most of the H-1Bs with I-140 cleared. Total yearly Revenue around $3,800,000. Gross yearly margin around $570,000. Sold for $855,000. 3000 times the hourly gross margin. 6 months guarantee for 90% of the Gross Margin.
WA Company – 8 consultants on billing. Microsoft MSA. Total yearly gross margin $1,200,000. Gross yearly margin around $250,000. A partner picked up minority ownership in the company to grow the business with the plan to buyout after 2 years.
Good news! Partnered with Finance companies who make funds available for the buyers to acquire existing IT companies. Let me know if you need any help with funding to buy.
Note to Owners: There are many big organizations with huge delivery team and cash on hand, looking forward to buying equity in your company and help you to grow if you have strong customer base and would like to take your business to the next level and cash out with higher value soon.
Following are some of the IT Companies that are available for acquisition and merger:
1. 08011410 – NJ Company – 8 consultants on billing. 8 on H-1B. 5 filed for I-140. 5 consultants new H-1B. Total yearly Revenue around $1,000,000. Gross yearly margin around $200,000. Looking for $350,000 as sale price. Will provide 6 months guarantee for 90% of the hourly gross margin.
2. 18122201 – VA Company – 12 consultants on billing. 11 on H-1B with 8 I-140 filed and 5 approved. 1 OPT. 1 more consultant on bench. 4 Direct Clients with VMS and SOW. 7 top Tier 1 Clients. Total yearly Revenue around $1,700,000. Gross yearly margin around $275,600. Looking for $650,000 or Best Offer. Will provide guarantee.
3. 19191408 – Boston Area Company – 30 consultants on billing. 6 more H-1B’s waiting. Combination of H-1B (mostly), OPT, CPT and EADs. 8 Direct Clients including Century Link, First Data, Citi and HP (4 Direct and 4 through MSP). Yearly Revenue around $3,800,000. Gross yearly margin around $1,300,000. Looking for $1,950,000 as sale price or Best Offer. Will provide 6 months guarantee for 90% of the GM. Down payment 50%.
4. 05042024 – TX Company – 23 consultants on billing. 1 on bench. H-1Bs and TNs. Labor filed for all H-1Bs and some TNs. Well established company. Broward Health/Cap Gemini/Intel/Intuit/State of Washington/TCS (CMCA)/Tech Mahindra MSAs. 5 recruiters/bench marketers in India operation. Space available to scale up to 20 offshore recruiters. Total yearly Revenue around $5,000,000. Gross yearly margin around $1,000,000. Looking for $1,500,000 as sale price for consultants and $100,000 per client when they become active during first 6 months period. Will provide 6 months guarantee for the 90% of the hourly Gross Margin.
5. 22091601 – PA Company – 16 consultants on billing. 12 on W2 and 4 on C2C. 7 on H-1B with I-140 approved. Couple on 1099 and few US Citizens.7 Direct Clients (2 on VMS) including CapGemini, Thermo Fisher, BCBS and PNC Bank. Around $2,500,000 yearly revenue. Gross yearly margin $516,000. Looking for a matching partner with good delivery team to grow business in the next 2 years and cash out. Will continue to work and grow the business. Looking for 2 times yearly gross margin as valuation.
6. 09191309 – MI Company – 2 consultants on billing on long term projects. 2 more on bench. All on H-1B with I-140 approved for the 2 consultants on billing. Around $355,000 yearly revenue. Gross yearly margin $38,000. Looking for best offer.
7. 25030612 – FL Company – Asset Sales only. 10 consultants on billing. All on H-1B. 7 filed for I-140. 3 consultants on bench with new H-1B. Total yearly Revenue around $1,200,000. Gross yearly margin around $155,000. Looking for $250,000 as sale price. Will provide 6 months guarantee for 90% of the hourly gross margin.
9. 03090301 – CA Company – 96 consultants on billing. Combination OPTs, H-1Bs, CPTs, GCs, EADs and Citizens. Facebook as direct client. Total yearly Revenue around $10,000,000. Gross yearly margin around $3,000,000. Looking for $5,000,000 Will guarantee for 6 months’ performance. Down payment 50%.
10. 18202201 – MD Company – 101 consultants on billing. Combination OPTs, H-1Bs, CPTs, GCs, EADs and Citizens. Mobile, UI and BigData skills. Total yearly Revenue around $12,800,000. Gross yearly margin around $3,800,000. Looking for $5,700,000 Will guarantee for 6 months’ performance. Down payment 50%.
11. 03162024 – TX Company – 100 consultants on billing. Combination 28 OPTs, 67 H-1Bs, CPTs, GCs, EADs. 41 GC Process going on. Good skills. Total yearly Revenue around $11,500,000. Gross yearly margin around $2,000,000. Looking for $4,000,000 Will guarantee for 6 months’ performance for 90% of gross margin. Down payment 50%.
12. 14091119 – KS Company – 39 consultants on billing. 24 in USA and 15 in India working on long term offshore projects with direct clients. 21 on H-1B. 15 with I-140 approved. 6 more consultants new H-1B. Specializing in BI, Analytics and Enterprise Web Portal and Content Management Solutions. Providing Consulting, Staffing, Offshore Development and Support. Many direct clients. Huge potential for the growth. Total yearly Revenue around $4,700,000. Gross yearly margin around $1,400,000. Looking for $3,600,000 or Best Offer. Will provide guarantee.
13. 16091410 – East Coast US – 51 US based W2 employee consultants on billing. 36 on H-1B with 13 I-140 approved and 9 PERM approved. 4 OPT. 3 additional consultants on billing (CTC/1099). Longstanding client relationships – 2 Direct Clients, 4 Direct with VMS/Implementing Partners. 30+ top Tier 1 Clients. Total yearly Revenue around $7,600,000. Gross yearly margin around $990,080 and EBITDA more than $700,000. Seller is looking to sell in multiple of EBITA only. (Buyer Representation)
14. Job Portal – Looking for Partner/Financier: Job Portal was created with the intent of helping the IT Consulting companies source Resumes needed for their open Job requirements at a low cost compared to other Job portals in the market and also help companies who market their bench candidates with ATS features. Revised to seamless integration with other systems like ATS, by revamping the whole design of the application and put it in the cloud and made it independent of each section so it can be integrated into any system seamlessly with the help of API’s and with less maintenance cost
The Portal have over 350,000 Resumes and the search functionality is the state of Art technology. The Portal has 70% of the code for creating a new product for ATS with the existing code base.
Looking for investing partner to take the product to market. Currently have clients with revenue stream.