Verified

The Company designs develops, and markets leading-edge, web-based/native-based business application software. The suite of products includes Sales Force Automation and Route Sales & Delivery platforms and systems for the wholesale distribution industry.  The business is located in Illinois with clients who are spread throughout the eastern and southern states. The Company is well positioned to provide a stable and profitable platform for growth. It is an attractive acquisition candidate for strategic or private investors desiring a well-established business with an emphasis on the wine and spirits industry.

Historically, Company revenues have ranged from $550,000 to $800,000 and SDCF normally above $200,000 for four years prior to 2016.  In 2016, the Company experienced an anomaly where the Company yielded $296,674 in Revenue with an SDCF of $70,804, partially the result of moving to new leading edge technology that took longer to implement than anticipated thus affecting normal course of business.   Even though 2017 was close to a repeat of 2016, in 2018 the Company is charting  a course closer to their historical averages with 2018 Projected Revenues near $425,000 and
(SDCF) near $136,800, and by 2019 Revenues are projected to be $927,000 with SDCF near $494,800, and by 2020 Revenues are projected to be $1,184,000 with SDCF at $629,800.  The Company enjoys a repetitive and recurring revenue stream which accounts for nearly 40% or more of the annual sales. These revenues are derived from perpetual software license fees and subscription fees from a SaaS (Software as a Service) model. The Company has the market presence and is positioned for growth.

In 2016, the Company completed design and development and delivered a suite of products each of which is web-based and ‘native’ based to operate with any current or future device and any operating system. This strategy enables a customer to effectively implement IOS technology within the Bring Your Own Device (BYOD) industry trend.  Software interfaces with QuickBooks and has voice activation barcoding.  Note that in 2019, there is an expected one-time increase in Revenue due to migrating some existing customers over to the newer technology platform.

MBBI Member
Gross Revenue
$425,000
Cash Flow
$136,800
State(s)
Illinois
Is this a franchise?
No
Home Based?
No
Can the business be relocated?
Yes
Number of Employees
3
Year Established
2000
Seller Financing Available?
Yes
Company Structure
LLC
Facilities
The Company is currently in a commercial office building. The business is easily relocatable to buyers preferred place of business.
Reason for Selling
The Company has established a solid platform in Sales Force Automation technology and created a reliable revenue and income stream, and thus achieved initial goals for the Company. The Shareholders currently desire to sell the business to a strategic buye
Market Outlook Competition

According to the latest procurement market intelligence report from Technavio, the global sales force automation (SFA) market is expected to grow at an impressive CAGR of 9.8% over the next five years due to the increase in the need to reduce the sales cycle.
The Company’s primary target market is the wholesale wine and spirits distribution industry. The go-to-market sales strategy is to approach Tier 2 (Annual Sales of $75M to $200M) and Tier 3 (Annual Sales of $5M to $75M) wholesale distributors in a direct marketing approach. Social Media tools are also used to compliment direct sales. A sophisticated integrated inbound and outbound communication system is used to nurture prospects, cultivate business relationships, and leverage behavior. Targeted e-mail campaigns, LinkedIn, Twitter, and You Tube are also employed to identify, qualify, and convert new leads to customers. Participation at industry trade shows provides for reputation validation and new prospects.
The suite of software offerings provides financial and productivity benefits to customers that translate into timely, quantifiable ROI. This niche market offers stability as the wine, spirits, and beer distributors are recession-resistant. There are also opportunities for growth by marketing the product to other areas of the country as well as outside the U.S. and within other markets such as food & snack, water, and coffee distributors.

Real Estate Included?
No
Equipment Included
No
Inventory Included?
No
Name
Todd Cushing