Acacia Group, Inc.

Business Brokerage  -  Business Consulting  - Valuations
Mediation Services  -  Mergers & Acquisitions
Phone: (408) 852-4358  Fax: (408) 852-4358

 

Serving companies with $500,000 to $20 million in revenue

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Acacia Group, Inc.

201 Los Gatos Saratoga Rd #230, Los Gatos, CA 95030 

Phone: (650) 692-5300 or (408) 216-8034   Fax: (888) 548-6695

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Member IBBA & CABB

 

CBI:Certified Business Intermediary

 

CBB: Competent Business Broker

 

CA Real Estate Brokers License

    Buyer Profile

    Sales Process

Business Type

Offering Price

Revenues

Cash Flow

Down Payment

Location

Design, Programming and Strategy for Web and Print Projects

$275,000

$250,000   (2009)

$150,000 (2009)

 

South Bay Area

FF&E: $30K (included in Purchase Price)          Location: SF Bay Area (South Bay)

Down Payment required: $100,000        SBA Loan possible for well qualified buyers.

Business Activity Code: 541511 Computer Design and programming services

SIC Code: 7371: Computer Programming & Design.

 

This well established business provides design, programming, and strategy for website and print projects.  This business was established Eight (8) years ago and has continued to do well.  Although during 2008 it was hit by the slowdown due to Recession, it has bounced back nicely with projected 2009 Sellers Discretionary Earnings expected to exceed $150K.  It is centrally located in south bay area.

 

Its major sources of revenue are Design, programming, and strategy for websites.  A majority of their customers are within Bay Area but they also have many customers throughout United States.  Customers value the face to face contact, a physical office, and employees in the same time zone as the customer.  Business has not been affected by outsourcing.  It derives its revenue from Graphic Design, Web Design, Programming, Marketing, Software Subscriptions, Internet hosting & domain related Services, and Print Brokering.

 

There is significant potential to continue to grow this business.  Since many of the existing customers continue to have ongoing projects, addition of new customers will grow the revenue.   Many of its customers have annual contracts for their service.

 

Owner is not a programmer and concentrates on the marketing and sales efforts, interacting with the customers, and supervising the operations of the business.

 

Market Conditions:  The business has rebounded nicely from the 2008 slow down caused by the recession. Owner believes that the business will do very well in 2009.

 

Equipment: All equipment, furniture, & fixtures are included in the purchase price.

 

Leased Space:  Business leases an office space with the monthly rent of $2,238.  The initial lease will expire in 2011.  Although it is centrally located, the office can be moved within South Bay Area.  It would not be difficult to find other suitable space at comparable rent.

 

Future potential:  Prospects of Business growth are excellent.  There are multiple additional ways of growing the business by adding new products, adding new customers, and increasing the sales force.  Adding commissioned sales people and more aggressive marketing can generate additional sales.  Due to the current economic conditions, there is no difficulty in hiring additional part-time or full-time programmers to get the job done.

 

Ideal Buyer: An individual who is good in Sales & Marketing with an ability to run a small business would be ideal.  Alternatively a skilled programmer with ability to run a small business can hire commissioned sales/marketing personnel to run the company.

 

Strict confidentiality is extremely important.  If you are interested, please complete the Confidentiality Agreement and Buyer Profile by clicking here FORMS  and fax the completed forms to us at (408) 852.4358.