Opportunity · TB-1188
Managed IT and cyber services provider, Scotland
Technology · Managed services · Scotland
Business name withheld until information release is approved.
Business summary
A managed service provider delivering IT support, cloud infrastructure and Cyber Essentials Plus advisory services to mid-sized professional and public-sector clients across Scotland. Revenue is overwhelmingly recurring, contracted on rolling 36-month terms.
The provider supports approximately 190 client organisations under managed service agreements, with a service desk operating extended hours and a dedicated security practice. Contracts are typically 36 months with automatic renewal, producing recurring revenue of over 84% of turnover and monthly churn consistently below 0.5%. The security practice has grown faster than the core support business and is now the principal source of new client acquisition.
Financial summary
Figures are as presented by the seller and reviewed by The Brokerage.
- Turnover band
- £2m–£5m
- Turnover
- £4,610,000
- EBITDA
- £826,000
- Adjusted EBITDA
- £904,000
- Guide price
- £4,950,000
- Price basis
- Enterprise value, cash-free debt-free
Three-year summary
2024 — turnover £4.61m, EBITDA £0.83m 2023 — turnover £3.96m, EBITDA £0.68m 2022 — turnover £3.22m, EBITDA £0.51m
Recurring / contracted revenue
84% recurring monthly contract revenue
Investment highlights
- 84% recurring monthly contract revenue
- Monthly client churn consistently below 0.5%
- Dedicated security practice with certification body relationships
- Average contract term of 36 months
- Installed base of approximately 190 client organisations
Transaction
- Preferred transaction type
- Full sale
- Reason for sale
- The founding shareholders are seeking a trade partner with the balance sheet to accelerate the security practice.
- Owner post-sale intention
- Both shareholders are willing to remain for a two-year earn-out period.
- Growth opportunities
- The security practice is capacity-constrained rather than demand-constrained. No structured cross-sell programme exists across the installed base of 190 clients.
Controlled information
Further information exists and is held back. Release follows an information request, and may require further approval and an NDA.
Business identity and trading address
Registered legal name, company number and full address.
Detailed financial information
Statutory accounts, management information and the adjustment narrative.
Customer concentration
Named customers, contract terms and revenue distribution.
Key staff and contracts
Management structure, key personnel and material agreements.
Supporting documents
Seller-supplied documentation released through the Deal Room.
Opportunity record
- Reference
- TB-1188
- Region
- Scotland
- Business type
- Private limited company
- Trading tenure
- 10–20 years
- Employees
- 26–50