Information Technology Industry Mergers & Acquisitions!

BUYERS

We pledge to our Buyers to provide with the fitting business through our contacts in the IT industry.

If you are looking to expand your business inorganically, please call us.

 

Steps in Buying a business:

1. Meeting and Discuss 
To understand your needs.
2. Signing Confidentiality Agreement 
You will sign a confidentiality agreement to protect all involved.
3. Identifying the Right Business 
We will start our process and bring you the right business.
4. Showing the Business 
We will arrange to get you the information regarding the business you are interested and arrange for a meeting with the seller for you to clear your queries. 
5. Offer or Letter of Intent 
You will present the seller with your letter of intent. 
6. Due Diligence 
We will help you with the due diligence for you to understand the business your are buying and make the final offer and proceed to settlement. 
7. Settlement 
The final phase of the purchase. We will advise the seller and you to engage your own attorneys and finalize the settlement. 

 

FYI, this is sellers’ market in the IT Industry M&A. Since it got difficult to grow organically, there are many buyers in the market looking to grow in-organically thru acquisitions. Many are looking to close deals before end of this year.

 

Following deals happened recently:

 

VA Company – 57 consultants on billing. 46 C2C consultants. 11 consultants on W2. No H-1B. Primarily working for Cognizant, Infosys, L&T Infotech, NTT Data, Tech Mahindra, Fulcrum, Mphasis and Persistent Systems. Around $430,000 annual profit in full time placement. Total yearly Revenue around $8,320,000. Gross yearly margin around $1,350,000. Looking for $1.6M as sale price all paid at closing. Complete setup off-shore recruiting office and not much on-site overheads at all.

 

“Sold for $1.6M within couple of days. 100% paid at closing.”

 

FL Company – 31 consultants on billing. No H-1B. OPT/CPT/GC/Citizens. 11 consultants on offshore development in India. 4 Direct Clients with VMS and SOW. Coca Cola, Pearson, GDIT, Medefis, etc. IT, Healthcare and Light Industrial placements. Total yearly Revenue around $2,000,000. Gross hourly margin around $260. Looking for 4000 times gross hourly gross margin or Best Offer. 50% down payment. Balance paid in 18 months. Will provide 90% guarantee for the gross margin.

 

“Seller partnered with the Buyer for long term benefits.”

 

TX Company – 35 consultants on billing. 11 H-1Bs and 24 TNs. H-1B filed for all TNs in 2020 quota. Labor filed or initiated for all. All long-term assignment. Well established company. Total yearly Revenue around $6,050,000. Gross yearly margin around $1,340,000. Looking for 1.11 times annual gross margin as sale price 100% paid at closing. Actual sale price $2,130,116.

 

“Sold at asking price.”

 

East Coast Company2 consultants on billing. No H-1B. Asset Sale only. Yearly Revenue $260,000. Gross yearly margin $124,000.  Looking for 1X Gross Margin. Will provide 15 months guarantee for the GM with 70% down payment. Buyer to pay $2000 per candidate as fee. 

 

Consultant – 1: Android Developer, US Citizen. Client: Comcast, Bill Rate: 60/hr, Pay Rate: 30/hr on 1099. GM - 30/hr

 

“Sold for 2000 times hourly gross margin. 60% down. Balance in 15 months.”

 

TX Company – Asset Sales only. 2 candidates on billing. Both on H-1B. Yearly Revenue around $ $350,000.00. Gross yearly margin around $42,000. Sale price $55,000. 100% payment at closing. 

 

“Sold for $50,000. 100% paid at closing.”

 

VA Area Company 60 consultants on billing. 39 on H-1Bs, 20 on OPT/CPT. 5 consultants on bench. All good Tier 1 Clients. Client include TEKSystems, E-solutions, UST Global, IDC Technologies, MindTree, INT Technologies, ALTEK, Jade, Diversant, Enable, Artech and TechMahindra. Yearly Revenue around $7,700,000. Gross yearly margin around $1,600,000. Looking for onetime payment.

 

“Sold for $1.6M, all paid at 100%.”

 

19032024 – TX Company – Asset Sales only. 1 candidate on billing. H-1B with Java. Yearly Revenue around $ $130,000.00. Gross yearly margin around $28,700. Sale price 1 times annual gross margin. 100% payment at closing. 

 

“Sold for $28,700. Paid 50% at closing. Balance in 90 days.”

 

24031410 – NJ Company – 9 consultants on billing. Total yearly Revenue around $1,000,000. Gross yearly margin around $425,000. Looking for 1.1 times the annual gross margin as sale price. Will provide 6 months guarantee for 90% of the hourly gross margin.

 

“Sold for 1000 times hourly gross margin. 100% paid at closing.”

  

Sellers

We pledge to our Sellers to sell their business quickly and to get the best market rate possible.

 For any reason, if you have decided to sell your business, we are here to help you. Please contact us.

Steps in selling your business:

1. Meeting and Interview 
To understand your requirements including your expectation and payment terms. 
2. Collect Data 
We will ask for your business information to come up with the valuation. 
3. Value the Business 
By checking the industry across the nation at that time, we will come up with the value for your business.
4. List the Business 
Once we sign the Listing/Sale Agreement, we will start the marketing. 
5. Market your Business 
We will reach out to our vast buyers in the market. 
6. Interview Prospective Buyers 
We will pre-qualify the buyers to save your most valuable time. 
7. Showing the Business 
With your approval, we will present your business information to the buyer, after they sign the Confidentiality Agreement. Also, we will arrange for your meeting with the buyer. 
8. Offer or Letter of Intent 
We will get the letter of intent from the buyer. 
9. Due Diligence 
You have to gather the past 3-5 years of financial data including Tax Returns, P&Ls, and Balance Sheets. We will also need copies of your current agreements for the due diligence
10. Settlement 
The final phase of the purchase. We will advise the buyer and you to engage your own attorneys and finalize the settlement. 

 

Clients looking for IT Companies:

Following are some of the clients who are looking to acquire US IT companies:

1. Indian Conglomerate with more than US$8 billion revenue is planning to expand in USA in the IT Industry. They are looking for couple of IT Consulting and Services companies with more than US$100 million in revenue and with solid infra structure to grow and with good clients, projects and or products.

2. FL client, with plans to go public in the next 3 years, is looking for IT companies with 30+ employees. This client will work with the seller, if the seller is interested in continuing to run the business.

3. VA client is looking for H-1B dependent IT companies with 20% gross margin.

4. CA client, who is trading in India, with plans to list in USA, is looking for any size IT companies.

5. PA client is looking for 10 to 15 employee’s IT company with direct client.

6. NJ client with multiple location in USA is looking for IT Companies with good client base.

7. FL client is interested in working with any individual who can bring in a lead for IT Companies with good growth plan. They have around US$30 million in funding.

8. VA client is looking for 40+ candidates’ company with majority W2 employees. Looking for companies in VA, NJ and TX. Willing to pay 1-year profit with 6 months guarantee. 

9. WA area client is looking for 100+ candidates’ company. Willing to pay 1-year profit with guarantee.

10. TX area client is looking for 30+ candidates’ company. Willing to pay 1-year profit with guarantee.

11. NJ client is looking for Niche Skills companies for immediate takeover. Peoplesoft, OBIEE, Oracle EBS and Oracle Applications. Willing to pay more if required to take over the companies.

12. MD client is looking for less than 50 candidate’s IT staffing services company. Willing to pay 15 months profit.

13. PA client is looking for companies with less than 5 consultants.

14. GA client is looking for companies with more than 25 million in revenue. Quick buyer.

Contact Us Today!

Contact:

 

Global 1 Company, Inc., 

Plano TX 75025.

(Phone) 469-444-0560 

(Fax) 469-444-6460

ravi@global1company.com

 

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