Niche Software Applications Company For Sale

Business description

This Niche Software Applications Company offers a proprietary software system applicable to an extensive array of employers. The company has the capability of customizing the software to interface with the customer's existing computer programs while collecting, processing and generating reports on the client's critical data associated with labor, employee costs, employee activities and production.

The systems existing, developed modules will allow the acquiring Owner to focus on sales and marketing. A long-term experienced programmer provides customer support as well as innovative solutions adapting the software package to meet customers' needs. The software is highly developed with extensive features that set it apart from its competitors. This acquisition opportunity includes all the intellectual property, the developed proprietary software. The firm?s operational systems enjoy a reputation for quality, extensive reporting capability, and reliability. Satisfied customers form a solid base for the acquiring Owner to work from while approaching potential clients with a renewed focus on marketing and sales. In recent years, the current Owner has done minimal marketing and follow-up on enquiries. New sales are solely from referrals providing a solid base of business on which a new owner can grow.

The Owner has concentrated on developing extremely good relations with a large institutional client. This client has multiple divisions using their software systems. A number of this institutional client's additional divisions have requested price quotes for installations and offered assurances that orders are forthcoming.

2006 Revenues were $621,972 with Discretionary Earnings to an Owner Operator of $542,199.

Discretionary Earnings to an owner operator have fluctuated substantially.

The Discretionary Earnings for five years from 2003 through 2007 averaged is $210,421.

Discretionary Earnings averaged for three years, from 2005 through 2007, come in at $208,127.

This company’s accounting period is on a calendar year, ending December 31.

As of September 30, revenues for this year (2009) total $346,224. 2009 revenues YTD include the first installment on a two year service contract and half of the second installment. As of September 30, 2009 the company has invoiced but not received payments for an additional $94,978. The remaining service contract installment (for the last half of a one year’s service contract ending in 2010) has also been invoiced with the pending payment of $84,833 due December 31, 2009.

The Owner reflects that this business has required part-time hours while providing a full-time income! If you focus on sales to a more diverse customer base, you will have the opportunity to minimize revenue and earnings fluctuations while increasing market share and profitability. All companies (prospective clients) want to control costs and save money, a strong selling point for this system.

Can you sell cost savings, increased productivity and profitability, which enables your customers to enjoy a substantial return on their initial investment? If you can, this software company offers you considerable opportunity for growth in revenues and earnings!

Property information

Location:

Relocation is a requirement. You can operate this company in a small office or run from a home office (customers do not come to the office).

Other information

Competition / Market:

This company offers an integrated system with multiple options. The programmer can customize the code to accommodate the needs of the clients. A limited number of competitors offer a similar but not necessariy comparable products and features. Training, ongoing service and support is part of this company's initial software package. Some customers opt for ongoing yearly support contracts. The current Owner strongly recommends that a strong sales initiative is a key part of the acquirer's business plan, enabling both sales and profitability to increase.

Support & training:

The Owner will provide one month of training and transitioning for the acquiring owner.

Reasons for selling:

Other Business Interests

Inventory / Stock value:

$720 (included in the asking price)