EX-345
This Company implements MSFT
Dynamics ERP/CRM, SaaS, and IaaS
platforms to its 200+ customers in
North America. Boasting recurring
revenues of more than 97%, this $6M
(USD) business has more than 15
years of experience in the IT sector.
With both public (Azure) and private
cloud offerings, the Company is
recognized nationally as a leader in
their space. Leveraging both
channel partners and internal sales
efforts, customers typically onboard
with one and two-year contracts. As
an MSFT Premier Partner, this
Company continues to thrive among
mid-market businesses and posts a
95%+ client retention rate.
HEADQUARTERS
Southwestern, U.S.
# OF EMPLOYEES
15
COMPANY OBJECTIVE
Managed Services
Sales & Marketing
Management
Accounting/Finance
08
04
02
01
Company
Sale
PRODUCTS AND SERVICES
• IT & IT-Enabled Outsourced Services
• Managed Services
• Microsoft Dynamics ERP and CRM software
deployment, maintenance, monitoring and
upgrading
• Software-as-a-Service
• ISV solutions for Business Intelligence, Billing, etc
• Enterprise Application
FINANCIALS
2013-2016E
10
Revenue
EBITDA
8
6
4
2
0
2013
2014
2015
Description ($M)
2013
2014
2015
2016E
Revenue
$2.72
$3.90
$5.10
$6.00
Gross Profit
$0.95
$1.64
$2.07
$2.40
SG&A
$0.49
$1.35
$1.48
$1.56
Adj. EBITDA
$0.27
$0.26
$0.52
$0.83
2016E
% BY REVENUE TYPE
RECURRING REVENUE
Hosting Fees*
Server Management Fees*
Storage Fees*
Installation Fees
2013
2014
2015
2016E
81%
11%
05%
02%
$2.63
$3.77
$4.97
$5.87
* Recurring Revenue
INVESTMENT CONSIDERATIONS
1.
2.
3.
4.
5.
6.
Recurring revenue of more than 97 percent represents a stable customer base with no
Accounts Receivable issues. All billing is done in advance, with the last month’s fee always on
account, as a security deposit.
Strong subject matter expertise in regulated industries such as publicly traded (SOX), HIPAA,
FDA and PCI compliance. Company has an excellent track record of working closely with its
regulated customers to ensure controls are in place to pass stringent audits. For these
customers, the Company’s private cloud package is required for data security. While the
Company’s regulated clients represent only 20 percent of its total customer base, the private
cloud offering resonates well with the balance of its customers.
As the Company’s largest single customer vertical, Healthcare/Pharma represents
approximately 23% of its total customer base. Having built a long-standing reputation in this
space, projections for growth are positive.
With more than 15+ years in the MSFT Channel, the company’s brand has incredible loyalty
and goodwill among Dynamics Partners.
The Company has one of the largest Dynamics ERP customer base in North America. Given
that it serves highly regulated companies that will not want a public cloud the embedded
customer base of Dynamics’ users represent longevity via private cloud opportunities and will
remain resilient against any commodization of Public cloud offerings.
Management is prepared to continue in a leadership capacity if welcomed or required as
part of the purchase agreement.
CHANNEL PARTNERS
# OF CUSTOMERS/RETENTION/LOCATION
CUSTOMERS BY REVENUE
225 / 95+%
TOP 10
} 05%
} 25%
} 58%
} 11%
} 01%
Northwest
Company #1
Company #2
Company #3
Company #4
Company #5
Company #6
Company #7
Company #8
Company #9
Company #10
Northeast
Southwest
Southeast
} 24%
Total
Foreign Countries
INDUSTRY AWARDS & RECOGNITIONS
MEDICAL DEVICE
LIFE SCIENCE
TECHNOLOGY
MEDIA
HEALTHCARE
FINANCIAL
ENERGY
END USER VERTICALS
NEXT STEPS
To learn more about company EX-345 please execute NDA and
send to Emma Sherrie. Our team will follow up with a mutually
executed NDA and provide an introduction to the company’s CEO.
Start NDA Now
3.5%
2.8%
2.7%
2.7%
2.4%
2.2%
2.2%
2.1%
1.7%
1.7%
Emma Sherrie
Asset Listing