We specialize in IT service firms which includes Web Hosting companies, Data Centers, Infrastructure as a Service and Managed Service Providers. We regularly list businesses ranging in size from ~$100K in annual revenue to $10M with occasional opportunities that exceed this range. Having said that, larger opportunities are typically presented to specific qualified buyers and those on our wishlist. We recommend monitoring our listings regularly, as the newest entries are always at the top and we update the list weekly with new listings.
We act as an intermediary, working with both buyers and sellers to facilitate a transaction that benefits both parties. Our focus is on achieving a successful deal where both sides are satisfied with the outcome measured by the question “Having completed the transaction, would you do this transaction again with the same party?”
The process can take anywhere from a few weeks to 90 days, depending on the size and complexity of the transaction. A well-prepared seller with organized documentation can significantly speed up the process. Once an offer is accepted, a letter of intent (LOI) is signed, typically with a 14–90 day exclusivity period. From LOI to closing, the entire process usually takes 1–3 months but can extend further if complications arise.
This is a common concern. Typically, the buyer makes the payment first, and credentials are then shared immediately after. If either party has trust concerns, using an escrow service or agent may be a good option, though it’s important to agree on who will bear the cost of the escrow but using escrow is not a common approach for most transactions.
While we don’t directly screen sellers, we have been in the industry for a long time and ask key qualifying questions to determine any initial concerns and we do not engage with sellers known for questionable business practices. Having said that, as a buyer, you are responsible for your own due diligence.
Yes, though most of our sellers are within North America. As a buyer, you have full control over whom you choose to engage with.
We require two things:
Yes, we require a signed buy-side agreement before providing detailed information about a listing. This ensures transparency regarding our fee structure from the outset.
You do not have to pay us a fee to review any of our listings however you do need to agree that if you are interested in the opportunity and make an offer that is acceptable to the seller AND end up closing the transaction, that we would be due a success fee and this can’t be a situation where we are either chasing buyers down to sign our agreement once we are well into the process or something that is negotiated afterwards.
We first need our buyer’s agreement signed with you as a buyer that outlines our fees, the services we provide and how we are compensated. Once we have the agreement back, you will then need to sign an NDA that addresses confidentiality with respect to the target listing and although we facilitate this process, the NDA itself is between you as a buyer and the seller.
Unlike selling a car or a house, a seller needs to value an offer from a number of perspectives that involve more than just a purchase price. They look at payment terms – is the purchase price paid 100% on closing or over time and if over time, how long a period? Is there any sort of earn out (claw back component). Is the seller being retained as an employee and if so, for how long and at what salary and what are the terms of the position? Has the buyer got experience with similar transactions and is there a cultural fit for employees and customers? Is the buyer local to the seller which might increase trust or improve fit. Given all of these factors and more, looking at price alone oversimplifies the process and it may be that a buyer chooses a lower offer in favor of other elements that are believed to be a stronger fit for the seller.
Valuation depends on multiple factors. In the hosting industry, businesses typically sell for 0.7 to 1.4 times their annualized recurring revenue. Services with high cost-of-goods (e.g., domain names) are valued differently—usually at net revenue. Prices can also be influenced by buyer competition and strategic fit. Managed Service Providers are generally valued as a multiple of EBTIDA or in some cases, SDE. More details on this can be found at Maximize Value & Navigate Growth Podcast.
We are compensated by the buyer upon a successfully completed transaction. Our fee aligns with the payment terms of the deal between you and the seller. Ex if the seller is paid over 2 years, we too are paid over 2 years.
Our compensation comes from buyers unless the seller prefers to pay our fee. Since we specialize in the IT industry, our buyers tend to be repeat clients, whereas sellers typically move on to new ventures or their next chapter. As a result, we have built long-term relationships with buyers and so they pay our fee.
Unlike generalist business brokers where sellers pay the broker fees, we are compensated by buyers because we focus on the IT industry, where buyers often pursue multiple acquisitions. This allows us to develop long-term relationships and provide ongoing value.
No, our fees are fixed. Negotiating fees would create inconsistencies, favoritism, and unnecessary complexity in managing different fee structures. Maintaining a standard fee ensures fairness for all buyers.
Our fee is 5% of the value of transaction paid on the same schedule that you the buyer pay the seller. We are there to support you from start to finish! The process generally follows this order:
*Please note that we are not CPAs, tax advisors or lawyers and do NOT provide legal or tax advice so you would need to retain these professionals separately to benefit from legal and tax advice.
This depends on the seller’s preferences and should be discussed early in the process. Some sellers are willing to stay for a transition period, while others prefer a clean break. If retaining staff is critical to you, look for listings that mention this explicitly. However, note that keeping additional employees (or the owner) may increase your costs and impact profitability.
Most sellers remain available for at least a few days to a few weeks post-sale, depending on the business’s complexity and may agree to stay on in a full time role. Some sellers agree to a defined transition period at no additional charge, while others may require compensation for extended support.
This varies. Most buyers prefer to migrate to their existing infrastructure to consolidate costs however if the customers cannot be moved off the equipment easily, the equipment needs to go with the transaction and since it’s necessary to support the business and therefore revenue stream, there is no additional value to be gained from the equipment unless it’s very new.
Asset sales are the most common, simplest, and fastest structure. Stock purchases may offer tax or liability benefits, but they require more due diligence. We can discuss the best structure based on your specific situation but you should also consult your lawyer and accountant.
Yes. You should have an attorney review your purchase agreement and LOI. In most cases, the buyer drafts the agreement and covers the legal costs of doing so.
Yes. An accountant can help assess the tax implications of an asset purchase versus a stock purchase. They can also evaluate financial risks, employee considerations, contract terminations, and other financial complexities.
No, we do not provide legal or tax advice. Buyers should consult their own CPA, tax advisor, or attorney for professional guidance.
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