Rapid Growth Software As A Service Technology Firm Business For Sale

Business description

This company provides copier and printer dealers with a non-invasive software tool for tracking, analyzing and managing meter reads and ink/toner cartridge levels for their customers. The company’s software allows for more efficient billing for ongoing maintenance and service contracts based upon the page counts from meter reads.

Property information

Real Estate:

Lease

Other information

Expansion potential:

The business model provides for exponential growth because of both the strong retention of accounts and growth within individual accounts. The total number of installations and devices is a function of both the number of dealers/distributors and the length of service with each account. In addition, there is long-term growth of meters per installation as a result of natural proliferation and expansion with each customer. These cumulative factors result in a compounded return on prior sales efforts and long-term growth that exceeds a typical linear return.

Competition / Market:

The company’s software is designed to fill the dealer/VAR/IT System Integrator need for meter count, device tracking, supplies management and seamless pass-through of billing data to commonly used accounting packages (allows dealers to accurately bill for managed solutions). It is preferred by dealers because it works. The conventional wisdom of the industry is that an end user needs to have minimum printing/copying demand of at least 10,000 pages per month in order to be a target for a print management solution sale. With target dealers (about 3,000) having on average about 1,000 such accounts, there is an estimated end-user customer base available of 3 million businesses. With an average of 10 or more devices per each target market business, the addressable market for printer/copier meter reading devices is estimated to be about 30 million in the US. Additionally, major international markets of Canada, Mexico and South America are virtually untapped. The company recently signed with a leading South American distributor for expansion.

Support & training:

The product developer and company owner has little interest in developing and operating a potentially global company. He realizes that professional strategic business and marketing expertise is necessary in order to continue to expand the company and achieve its full potential. Rather than pursue the next stage of development for the company, he prefers to be part of or consult for a larger company or partner with an experienced software company CEO so that he can concentrate on creating really impressive software tools that work as promised and provide exceptional value to the user.

Reasons for selling:

Rather than pursue the next stage of development for the company, the founder prefers to be part of or consult for a larger company or partner with an experienced software company CEO so that he can concentrate on creating really impressive software tools that work as promised and provide exceptional value to the user. The company is an ideal candidate for strategic acquisition by a leading OEM technology innovator seeking to gain competitive advantage by increasing the tools available to their direct sales force and/or their resellers for complete imaging fleet management solution sales and service support. With its distribution base through dealers and the additional installed base among end users, it is also an attractive candidate for a strategic growth acquisition by other software technology companies searching for a value-added solution in the same sector. The opportunity also exists for an experienced early stage software company CEO or investor group to acquire the company, capitalizing on the strong profitability of the firm, and adding additional marketing and sales resources in order to accelerate growth and market share for the company.

Related documents:

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• Nondisclosure Agreement