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We are helping sellers with revenues in the <$1 million to >$200 million range or buyers in areas such as: IT Services, Managed Services, Systems Integration, VAR, Software Applications, ERP, Mobility, Collaboration, UC, Cloud Technologies, SaaS, Cybersecurity, Networking, Data Center, Audio-Video, ISP, IT Staffing, Monitoring, Document Management, Digital Marketing, and other technology areas.

Eastern Area Company – Federal contracts company with Top Security Clearance. Company listed in 2022 as one of the 500 fastest growing companies in North and South America. 200+ Cleared Resources. 75+ Cleared Resources at Top Secret SCI CI Poly and 6+ Resources cleared Full Scope Ply (NSA/CIA). Services offered include Cybersecurity (Identity and Access Management Solutions, Security Monitoring Implementation, SOC Monitoring, and IA), Cloud Computing and Virtualization (SaaS, IaaS, SoftVirt, ITaaS and PaaS), Data Center Monitoring, Application Performance Monitoring, Expert Level Programming Services (Java, Kotlin, Swift, iOS and Android). Employees have Certifications including CISSP, CISM, Azure Solutions Architect, AWS, Google Cloud, Splunk Enterprise Architect and MicroFocus. Software (OEM) Vendor Partners with Dell, Google, CA, MicroFocus, PLAID, Oracle, Broadcom, RedHat, Adobe, Amazon, and Microsoft. Services Teaming Partners with Northrop Grumman, Peraton, ManTech, General Dynamics, Oracle, L3Harris and ECS. Client List include DoD, US Marine Corp, DLA, US Coastal Guard, Department of Navy, DCSA, US Army, Pentagon Force Protection Agency, DNDC, DISA, DoD National Intelligence Agencies, NSA, NRO, NGIA, DIA, CIA, DoJ, NOAA, IRS, Treasury, DOE, DVA, CDC, NIH, GSA, Freddie Mac, Fannie Mac, NYC HRA, and The City of Morgantown, WV. 32 active contracts. With value of more than $11B through 2030. Revenue realized to date since company inception $100M+.  2021 Revenue $31M. Prime Contracts with GSA IDIQ, Oracle, RedHat, Adobe, STARS III GWAC, NOAA and Broadcom. Estimated 2022 gross revenue will be around $36M. Estimated 2022 EBITA is around $2M. 2021 EBITA is around $1.7M. Looking for 6 times EBITA as sale price. 70% down payment. Balance paid in 12 months. 90% guarantee. The seller will leave 30 days working capital. The seller is willing to stay with minority shares and grow the business.

"Acquired for 5.72 times EBITDA. Include $2.7M in AR and $3M in working Capital in the valuation. 50% paid at closing. 25% in 12 months and 25% after 18 months. 90% guarantee. The seller is staying back with 25% share in the company."

01032024 – Assets Sale – 11 H-1B candidates with very good skills. Good Tier 1 vendors. Long term projects. The annual revenue run rate is more than $1.5M. The hourly gross margin is around $100. Looking for 3000 times hourly gross margin as sale price. All paid at closing. No guarantee. 

Sold for 3000 times hourly gross margin. No guarantee.

Direct Client Company – Primary vendor to Medline Industry. $20M+ business in the past few years. Providing IT Staffing and Managed Services. Having office in USA and India. Other clients include Infosys / Apex 2000, NTT Data with VMS, Modis with VMS, State of Connecticut, State of Oregon, State of Colorado, and City of Atlanta. VMS with Covendis and Vector. 32 candidates on billing. 6 on W2 (2 H-1Bs, 1 GC, 2 US Citizen, and 1 H4/EAD), 3 on 1099, 10 in India and 13 C2Cs. 5 more H-1B candidates on bench. 2 in India (one with stamping and other one waiting to get stamped). Current annual revenue is more than $5.2M. Hourly gross margin around $644.  Looking for 4200 times hourly gross margin or better offer with 70% down payment and balance paid in 6 months with 90% guarantee. 

"Sold for 3800 times hourly gross margin. All paid at closing. No guarantee."

Texas Company – Wipro vendor. Also, vendor to ARTech, vDart and IDC. Very long-established company. 15 candidates on billing. One on bench. All on H-1B. The current revenue running rate is more than $2M. The current hourly gross margin is more than $164. Looking for 2800 times hourly gross margin as the sale price. All paid at closing. For the bench candidate the valuation will be paid after the candidate gets placed in a project. The buyer must pay a $1000 fee per candidate. One of the candidates is on the 2nd project. 75% of that margin will be paid to the seller for the duration of the project.

"Sold for 2500 times hourly gross margin. All paid at closing. No Guarantee."

East coast Area Company – Very long-established Company. Providing services in Software Development, Information Security, Microsoft Solutions and Staff Augmentation. Servicing Government, Insurance, Energy/Utilities, and Healthcare Clients. Many Direct Clients. Clients include Aflac/Fieldglass, AMFAM/Simplyfy, Dominion/Fieldglass, Jabil, Meridian/SEDC, MSA, NRECA, PRN, Rollins/Fieldglass, Sogeti, and many others. Many requirements. Around 110 candidates were on billing. Around 40 candidates in India and 70 in USA. Couple of H-1Bs. Well established Offshore outsourcing division has Managed services, Staff Augmentation projects for US clients. Very efficient back office and recruiting team. Around $15.6M is the current yearly revenue run rate. The yearly gross margin is around $3,400,000. Adjusted EBITDA is around $2,200,000. Huge potential to grow leveraging the Onsite Sales team and the current client base and with the potential clients in the pipeline. Looking for $10M as the sales price. 70% down payment at closing and balance paid in 6 months with 90% guarantee.

“Sold for 3.5 time the EBITDA. Acquired by a solutions and managed services company based out of Northeast to expand practices and industry focus. 70% down paid at closing. 20% in 6 months and 10% in 12 months. 6 months 90% guarantee.”

Texas Company – Direct Clients. Clients Include Wongdoody / Infosys, Intellibus, Hexaware and Insight Global. 18 candidates. 4 H-1Bs. 3 OPTs. 4 H-4 EADs. 5 GCs. 2 C2Cs. 19 projects. One on bench. Mostly .NET, UI and Java Developers. Current yearly revenue is more than $2.1M. The current hourly gross margin is around $214. Looking for 3000 times hourly gross margin. Non-negotiable. 70% down paid at closing and balance paid in 6 months with 90% guarantee. The buyer pays $1000 per candidate as a fee.

"Sold for 2800 times hourly gross margin."

Staffing Company Total 31 candidates. 21 candidates on billing. 10 candidates on bench. All on TN Visa. Java and Mobile Technology skills. Current revenue is more than $2.8M. The hourly gross margin is around $371. Looking for 3500 times hourly gross margin as sale price, firm. 60% down payment. 20% after 3 months and balance paid in 6 months. Guarantee covered by the candidates on bench. The seller will provide support for 6 months. The company comes with 1 senior sourcing manager and 3 junior sourcing teams in Mexico. Buyer gets both US registered and Mexico registered companies. Buyer to pay a fee.

"Sold for 3200 times hourly gross margin. 70% paid at closing. Balance will be paid in 6 months. 90% guarantee."

West Coast Company – TCS Vendor. Around 87 candidates are on billing. More than 90% on W2. H-1B, OPT/CPT and US Citizens. Many direct clients and good Tier 1 vendors. TCS, Tek Systems, Global Logic, Uber, Santa Clara County, Claros Analytics, and others. More than $11M in annual revenue. Around $1290 hourly gross margin. Looking for 4200 times hourly gross margin. Comes with complete back office for continuous growth. The owners will help in transition. 70% down payment and the balance paid in equal installments. 90% guarantee for 12 months. 

"Sold for 3550 times hourly gross margin. 70% paid at closing."

East Coast Area Company – Clients include Johnson Controls (VMS/Ariba SAP), AgileOne (VMS/Fieldglass), HCL (VMS/People 2.0), Globant (VMS/Ariba SAP), CapGemini (VMS) and TCS (Tier 1). No W2 employees. All on C2C. 57 candidates on billing. Current revenue run rate $14M. The hourly gross margin is around $1358. Looking for 4500 times hourly gross margin or best offer as sale price. 90% guarantee for 6 months.

"Sold for 4000 times hourly gross margin valuation. The buyer took over 80% of the shares in the company. 70% down payment and balance paid in 6 months."

Texas Company – Healthcare, Education, and IT Services company. All Direct Clients. Aimbridge, BayMark Health Services, Cambium Learning, Cambium Assessment, Centauri Health Solutions, Unifeye Vision Partners, Total Ancillary, Tenet Health, Methodist Health System, Learning A-Z, Healthmark Group, HCA Healthcare, Guardian Mortgage, Daeske, Davis Wright Tremaine, First Financial Northwest Bank, Lancaster Regional Hospital, Lifestyle Plan, Panorama Eyecare, Sunflower Bank, and USPI. Providing services in the area of Healthcare Revenue Cycle and Clinical Applications, Finance and Accounting, Financial Services, Information Technology and Solutions and Human Resources and Recruiting. In the area of Permanent Talent Acquisition, Contract Talent Acquisition, Recruitment Outsourcing and Managed Services. Skill set utilized include EPIC, Cerner, NextGen, Meditech, GE Centricity, Athena, CompuLink, McKesson, MEDHOST, Java, .NET, and others. Current yearly revenue is around $1.92M. Permanent placements around $172,000 and Contract placements around $1,750,000. The hourly gross margin is around $285. Looking for 4500 times hourly gross margin as sale price. 70% paid at closing and the balance paid in 6 months. Buyer must pay the fee.

"Sold for 4200 times hourly gross margin. Seller stayed back with 20% of the shares and employment."

Assets Sale – 7 candidates on billing. All on H-1B, except one TN. All working through Tier 1 Clients. Long term projects. The yearly revenue run rate is around $800,000. The hourly gross margin is around $90. Looking for 2800 times hourly gross margin as sale price. Negotiable. 70% paid at closing and balance paid upon successful transfers of the MSAs and POs. Buyer must pay a fee.

"Sold for 2600 times hourly gross margin. 100% paid at closing."

Asset Sale – 5 H-1B candidates. Most are with AEM (Adobe Experience Manager). Working through good Tier-1 clients. The current annual revenue run rate is $654,000. The current hourly gross margin is $45.57. Looking for 2500 times hourly gross margin as sale price. 70% at closing and 30% after completion of the MSA and PO transfers. Buyer to pay for the H-1B transfer. Buyer must pay a fee.

"Sold for 2500 times hourly gross margin. No Guarantee. All paid at closing."

Overall, the going valuation for H-1B dependent company is around 1.75

 times yearly gross margin without any direct clients. If there are direct clients, then the valuation is around 2.25 times the yearly gross margin. Companies with good direct clients and even if they do not have H-1Bs, are valued around 4.5 to 6 times yearly EBITA. Companies with Products and Projects are valued differently.  (The Gross Margin is calculated by subtracting 1.1 times the pay rate from the bill rate. 1.1 covers 10% direct expenses. Also, any other direct costs like medical insurance, vacation and bonus will be deducted.)